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The Table Below Summarizes the Information Possessed by a Firm

Question 189

Multiple Choice

The table below summarizes the information possessed by a firm in a monopolistically competitive market. Quantity demanded is in thousands of units.
The table below summarizes the information possessed by a firm in a monopolistically competitive market. Quantity demanded is in thousands of units.    -Refer to the table above.This market is ________. A)  in the long-run equilibrium, because the firm earns a maximum profit of zero B)  in the long-run equilibrium, because the marginal revenue equals the marginal cost at the optimal quantity for the firm C)  not in the long-run equilibrium, because the firm earns a maximum profit that is negative D)  not in the long-run equilibrium, because the marginal revenue and the marginal cost are not equal
-Refer to the table above.This market is ________.


A) in the long-run equilibrium, because the firm earns a maximum profit of zero
B) in the long-run equilibrium, because the marginal revenue equals the marginal cost at the optimal quantity for the firm
C) not in the long-run equilibrium, because the firm earns a maximum profit that is negative
D) not in the long-run equilibrium, because the marginal revenue and the marginal cost are not equal

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