Suppose that a firm in a monopolistically competitive market has a constant marginal cost and it is making a positive profit in the short run.What will happen in the long-run equilibrium?
A) The firm will keep producing the same quantity but earn zero profit.
B) The firm will produce zero units and earn zero profit.
C) The firm will produce more but earn zero profit.
D) The firm will produce less but earn a positive profit.
Correct Answer:
Verified
Q101: The following figure shows the cost curves
Q106: The following figure shows the cost curves
Q113: The following table shows the total costs
Q114: The following table shows the total costs
Q115: The table below summarizes the information possessed
Q116: The following figure shows the demand and
Q117: The table below summarizes the information possessed
Q121: The following figure shows the demand curve
Q122: The following figure shows the demand curve
Q123: Which of the following is true?
A) A
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