Social Science Clinic => Economics => Topic started by: laurencescou on Apr 19, 2019
Title: A monopolistically competitive firm maximizes profit by producing where marginal revenue equals marginal cost.
Post by: laurencescou on Apr 19, 2019
Question 1
In long-run equilibrium for a monopolistically competitive industry,
◦ all firms earn a profit. ◦ all firms break even. ◦ all firms suffer losses. ◦ firms can earn a profit, suffer a loss, or break even.
Question 2
A monopolistically competitive firm maximizes profit by producing where marginal revenue equals marginal cost.
◦ true ◦ false
Title: A monopolistically competitive firm maximizes profit by producing where marginal revenue equals marginal cost.
Post by: katara on Apr 19, 2019