Author Question: When the monopolistically competitive firm shown in the above figure is at its long-run equilibrium, ... (Read 210 times)

Medesa · **on:** Jun 29, 2018

When the monopolistically competitive firm shown in the above figure is at its long-run equilibrium, it will be

A) producing the efficient scale of output and is at point A on the ATC curve.
B) producing more than the efficient scale of output and is at point C on the ATC curve.
C) producing at less than the efficient scale of output and is at a point such as F on the ATC curve.
D) producing the efficient scale of output and is at point B on the MC curve.

Question 2

If marginal benefit is greater than marginal cost for the production of cars, to reach the allocative efficient quantity of cars, the production of cars must be increased.

Indicate whether the statement is true or false