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Author Question: A monopolistically competitive firm in the long run ________. A) is inefficient because it makes ... (Read 92 times)

jman1234

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on: Jun 29, 2018
A monopolistically competitive firm in the long run ________.
 
  A) is inefficient because it makes zero economic profit
  B) produces a profit-maximizing amount of output that is less than capacity output
  C) is efficient because it makes zero economic profit
  D) sets its price equal to its marginal cost

Question 2

What is producer surplus?
 
  What will be an ideal response?


josephsuarez

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

Producer surplus is the price of a good received minus the marginal cost of producing it, summed over the quantity sold.


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