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Question 24

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Use the following to answer questions :
Figure 10-3 Use the following to answer questions : Figure 10-3   -The imperfect competitor shown in Figure 10-3: A) could be in a long-run equilibrium situation for monopolistic competition, since P = AC. B) must be in a long-run equilibrium situation for a monopoly, since P = AC. C) should shut down, since profits are zero. D) cannot be in a long-run equilibrium situation for monopolistic competition, since P is not equal to MC. E) none of the above.
-The imperfect competitor shown in Figure 10-3:


A) could be in a long-run equilibrium situation for monopolistic competition, since P = AC.
B) must be in a long-run equilibrium situation for a monopoly, since P = AC.
C) should shut down, since profits are zero.
D) cannot be in a long-run equilibrium situation for monopolistic competition, since P is not equal to MC.
E) none of the above.

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