Author Question: Which of the following statements best describes firms under monopolistic competition? a. Profits ... (Read 34 times)

maegan_martin · **on:** Jun 30, 2018

Which of the following statements best describes firms under monopolistic competition?
a. Profits will be positive in the long run.
b. Price always equals average variable cost.
c. In the long run, positive economic profit will be eliminated.
d. Marginal revenue equals minimum average total cost in the short run.

Question 2

Consumer equilibrium occurs where the budget line is tangent to the:
a. lowest possible indifference curve.
b. highest possible indifference curve.
c. utility maximizing indifference curve.
d. utility equalization indifference curve.