Exhibit 10-1
-The monopolistic competitor in Exhibit 10-1 is in
A) long-run equilibrium because price equals average total cost
B) long-run equilibrium because marginal cost equals marginal revenue
C) long-run equilibrium because price exceeds marginal cost
D) short-run equilibrium because it is earning a positive economic profit
E) short-run equilibrium because price equals average total cost

Question

Exhibit 10-1 
-The monopolistic competitor in Exhibit 10-1 is in
A) long-run equilibrium because price equals average total cost 
B) long-run equilibrium because marginal cost equals marginal revenue 
C) long-run equilibrium because price exceeds marginal cost 
D) short-run equilibrium because it is earning a positive economic profit 
E) short-run equilibrium because price equals average total cost

Quizplus · Accepted Answer

The Answer of Exhibit 10-1 
-The monopolistic competitor in Exhibit 10-1 is in
A) long-run equilibrium because price equals average total cost 
B) long-run equilibrium because marginal cost equals marginal revenue 
C) long-run equilibrium because price exceeds marginal cost 
D) short-run equilibrium because it is earning a positive economic profit 
E) short-run equilibrium because price equals average total cost

Exhibit 10-1 -The Monopolistic Competitor in Exhibit 10-1 Is in