In long-run equilibrium in a monopolistically competitive market, ...

[frankwu]

In long-run equilibrium in a monopolistically competitive market, firms typically:
 a. earn a normal profit.
 b. charge a price equal to marginal cost.
 c. earn an above-normal profit.
 d. charge a price equal to marginal revenue.

Question 2

A contract can help a seller to receive better creditors to finance his/her inventory.
  Indicate whether the statement is true or false

[Harbringer]

Answer to Question 1

a

Answer to Question 2

T