Use the following for questions 43-51.
Exhibit: Firms in Monopolistic Competition

-(Exhibit: Firms in Monopolistic Competition) Long-run equilibrium is illustrated at the profit-maximizing price _______ in Panel _______ .
A) F; (a)
B) G; (a)
C) H; (b)
D) I; (c)

Question

Use the following for questions 43-51.
Exhibit: Firms in Monopolistic Competition
 
-(Exhibit: Firms in Monopolistic Competition) Long-run equilibrium is illustrated at the profit-maximizing price _______ in Panel _______ .
A) F; (a) 
B) G; (a) 
C) H; (b) 
D) I; (c)

Quizplus · Accepted Answer

In the long-run equilibrium, the firm produces where marginal cost equals marginal revenue and charges a price higher than the minimum average total cost. In this exhibit, panel (b) shows the long-run equilibrium position where the profit-maximizing price is H.

Use the Following for Questions 43-51