-The above figure definitely shows
A) a long-run equilibrium for a monopolistically competitive firm.
B) an industry with few firms.
C) a long-run equilibrium for a perfectly competitive firm.
D) a long-run equilibrium for a perfectly competitive market.
E) a short-run equilibrium for a monopoly.

Question

-The above figure definitely shows
A) a long-run equilibrium for a monopolistically competitive firm. 
B) an industry with few firms. 
C) a long-run equilibrium for a perfectly competitive firm. 
D) a long-run equilibrium for a perfectly competitive market. 
E) a short-run equilibrium for a monopoly.

Quizplus · Accepted Answer

In a long-run equilibrium for a monopolistically competitive firm, firms make zero economic profit, and the demand curve is tangent to the average total cost curve, which is typically shown in such figures.

-The Above Figure Definitely Shows