A profit-maximizing, monopolistically competitive restaurant serves 60 burgers a day at a total cost of $180 and earns a total profit of $180.In the long run, everything else equal, the
A) restaurant will charge more than $6 per burger.
B) restaurant's average total cost will rise and its total revenue will fall.
C) restaurant will sell more burgers at a lower average profit per burger.
D) All of the above are correct.
Correct Answer:
Verified
Q108: Monopolistic competition in long-run equilibrium is characterized
Q111: Figure 12-2 Q113: Figure 13-2 Q125: A monopolistically competitive firm in the long Q126: What is the long-run effect on the Q129: The excess capacity theorem implies that Q136: A firm in a monopolistically competitive market Q146: Oligopolists Q150: The market structure that is associated with Q152: Heavy advertising expenditures usually indicate
A)consumers would
A)are price takers.
B)rarely advertise.
C)must take rivals' reactions
A)oligopoly.
B)pure competition or
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