In the long run, a monopolistic competitive firm will operate at a price which:
a. is higher than minimum long-run average cost.
b. equals minimum long-run average cost.
c. equals marginal cost.
d. none of these.
Question 2
Consumer equilibrium occurs at:
a. any point of intersection between the budget line and an indifference curve.
b. a point of tangency between the budget line and an indifference curve.
c. the point where the slope of the indifference curve equals the ratio of the quantities.
d. a point where the budget line cuts the curve from below.
the comet Encke riding along its pebbly trail of debris (long diagonal line) between the orbits of M
Solution (Polynomial Long Division)
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