Author Question: For a monopolistically competitive firm in long run equilibrium: a. marginal revenue equals ... (Read 64 times)

jake · **on:** Jun 30, 2018

For a monopolistically competitive firm in long run equilibrium:
a. marginal revenue equals marginal cost and price equals average cost.
b. the economic profits it is earning will soon be competed away by entry.
c. accounting profits are zero and price equals marginal cost.
d. marginal revenue equals marginal cost and average total cost is minimized.

Question 2

Farmers can avoid the free rider problem associated with the benefits received from beekeepers by:
a. forming local associations who contract with beekeepers.
b. excluding non payers from using the services provided by beekeepers.
c. fixing a low charge for the service provided by beekeepers.
d. contracting with selective beekeepers and giving them a share of farm output.