QuestionMay 27, 2025

In the long run the price charged by the monopolistically competitive firm attempting to maximize profits Multiple Choice must be less than ATC. must be more than ATC may be either equal to ATC, less than ATC, or more than ATC. will be equal to ATC.

In the long run the price charged by the monopolistically competitive firm attempting to maximize profits Multiple Choice must be less than ATC. must be more than ATC may be either equal to ATC, less than ATC, or more than ATC. will be equal to ATC.
In the long run the price charged by the monopolistically competitive firm attempting to maximize profits
Multiple Choice
must be less than ATC.
must be more than ATC
may be either equal to ATC, less than ATC, or more than ATC.
will be equal to ATC.

Solution
4.6(251 votes)

Answer

will be equal to ATC. Explanation 1. Understand Monopolistic Competition in the Long Run In the long run, firms in monopolistic competition earn zero economic profit due to free entry and exit. 2. Relate Price to ATC When firms earn zero economic profit, price equals average total cost (ATC).

Explanation

1. Understand Monopolistic Competition in the Long Run<br /> In the long run, firms in monopolistic competition earn zero economic profit due to free entry and exit.<br /><br />2. Relate Price to ATC<br /> When firms earn zero economic profit, price equals average total cost (ATC).
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