
What is an important difference between the situations faced by a profit-maximizing monopolistically competitive firm in the short run and in the long run
A) In the short run, price may exceed marginal revenue; in the long run, price equals marginal revenue.
B) In the short run, price may exceed marginal cost; in the long run, price equals marginal cost.
C) In the short run, price may exceed average total cost; in the long run, price equals average total cost.
D) In the short run, price may exceed average variable cost; in the long run, price equals average variable cost.
Correct Answer:
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