Solved

Suppose That a Firm in a Monopolistically Competitive Market Has

Question 118

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents