In the long-run, a firm in monopolistic competition has A. a price that exceeds its average total...
Question:
In the long-run, a firm in monopolistic competition has
A. a price that exceeds its average total cost.
B. a marginal cost that exceeds its price.
C. a price that exceeds its marginal cost.
D. an average total cost that exceeds its price.
Monopolistic Market:
The monopolistic market is one of the forms of the market structure in which there are several buyers and sellers for a particular product/service in the market. Along with this, market entry and exit are non-restrictive.
Answer and Explanation: 1
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View this answer- The correct option is C. A price that exceeds its marginal cost.
The monopolistically competitive firms even in the long-run share some degree of...
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Characteristics of Monopolistic Competition
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Chapter 7 / Lesson 11
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Monopolistic competition occurs where the products that are being sold by competing companies serve different purposes, allowing for entering and exiting the market with ease. Explore the characteristics of monopolistic competition and the factors of equilibrium and risk.
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- In a perfectly competitive market: the market price is 22 Marginal cost (MC) = 2(Q) + 8 average total cost at equilibrium is 28, and average variable cost at equilibrium is 10. 1: The profit maximizing price is: 22 2: The profit maximizing quantity is:7 3
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- In the long run, a firm in monopolistic competition produces where the slope of the average total cost curve is A. zero. B. equal to the marginal cost. C. positive. D. negative.
- If a profit-maximizing firm in a perfectly competitive market is making an economic profit, then it must be producing a level of output where: A) marginal cost is greater than average total cost. B) marginal cost is greater than marginal revenue. C) price
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- When a firm has a natural monopoly, the firms: a. Marginal cost always exceeds its average total cost, b. Total cost curve is horizontal, c. Average total cost curve is downward sloping, d. All of the above are correct.
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- If price is less than average cost, A. the firm may still make profits as long as marginal cost is low. B. the firm's maximum profit is negative. C. there is no profit-maximizing level of output. D. marginal cost must necessarily be high.
- A monopolist: a. maximizes profit at the output where price equals marginal cost. b. charges a higher price than a competitive firm, ceteris paribus. c. is a price taker since it has market power. d. cannot earn an economic profit in the long run.
- 1. For monopolistic competitive firms in the long-run equilibrium, A. the demand curve must intersect the average total cost at its minimum. B. at the profit-maximizing quantity, the demand curve must be tangent to the average total cost curve. C. the dem
- A monopolist is producing a level of output at which price is $8, marginal revenue is $5, average variable cost is $6, and marginal cost is $10. In order to maximize profit, the firm should: a. decrease price b. increase price c. keep price the same d. in
- In a perfectly competitive market, to maximize profit, the price should equal: A.Average fixed cost B. Explicit costs C. Average variable cost D. Marginal cost
- A monopolistically competitive firm maximizes profit where: A. price = marginal revenue. B. marginal revenue is greater than average revenue. C. price is greater than marginal cost. D. total reven
- In a perfectly competitive market, in the short run a firm should shut down if a. price is less than average fixed cost when marginal revenue equals marginal cost. b. price is less than average vari
- Every firm maximizes profit where: a. average revenue equals average total cost. b. average revenue equals average variable cost. c. total revenue equals total cost. d. marginal revenue exceeds the marginal cost by the greatest amount. e. marginal re
- For a monopolistic competitive firm, marginal revenue is: a) less than the price b) greater than the price c) equals the price d) price is unrelated
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