The figure below shows the revenue and cost curves of a monopolistically competitive firm. Figure 25.2
In the figure,
D: Demand curve
MR: Marginal revenue curve
ATC1 and ATC2: Average total cost curves
MC: Marginal cost curve
In Figure 25.2, if the market is monopolistically competitive, which quantity represents long-run equilibrium for the firm?
A) 15
B) Between 15 and 40
C) 40
D) 55
E) 60
Correct Answer:
Verified
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