Which of the following is true at the long-run equilibrium in a monopolistically competitive market? A. Each firm's output is at the point that minimizes its long-run average cost. B. Each firm earns zero economic profit. C. Price is equal to marginal cost. D. All of the above.

correct answer is Each firm earns zero economic profit because as in a monopolistic competitive market, free entry and exiting the market, if there is a profit, more companies will come and it will reduce the price to zero. so that the market has zero economic benefit.

Answer Link

Which of the following is true at the​ long-run equilibrium in a monopolistically competitive​ market? A. Each​ firm's output is at the point that minimizes its​ long-run average cost. B. Each firm earns zero economic profit. C. Price is equal to marginal cost. D. All of the above.

Respuesta :

Otras preguntas

Which of the following is true at the long-run equilibrium in a monopolistically competitive market? A. Each firm's output is at the point that minimizes its long-run average cost. B. Each firm earns zero economic profit. C. Price is equal to marginal cost. D. All of the above.