In long-run equilibrium,a profit-maximizing firm in a monopolistically competitive industry produces the quantity of output where:
A) AC = P,MR = MC = P.
B) AC

Question

In long-run equilibrium,a profit-maximizing firm in a monopolistically competitive industry produces the quantity of output where:
A) AC = P,MR = MC = P.
B) AC < P,MR = MC = P.
C) AC < P,MR + MC < P.
D) AC = P,MR = MC < P.

Quizplus · Accepted Answer

The Answer of In long-run equilibrium,a profit-maximizing firm in a monopolistically competitive industry produces the quantity of output where:
A) AC = P,MR = MC = P.
B) AC < P,MR = MC = P.
C) AC < P,MR + MC < P.
D) AC = P,MR = MC < P.

In Long-Run Equilibrium,a Profit-Maximizing Firm in a Monopolistically Competitive Industry