Consider a monopolistically competitive industry which is in ...

[tichca]

Consider a monopolistically competitive industry which is in long-run equilibrium. Which of the following is TRUE?
 
  A) All firms charge a price equal to average total cost.
  B) All firms charge a price equal to marginal cost.
  C) All firms earn positive economic profit.
  D) Demand, average total cost, and marginal cost all intersect.

Question 2

Shaniq buys only soda and pizza and is buying the amounts that maximize her utility. The marginal utility from a soda is 30 and the price of a soda is 2. The marginal utility from a slice of pizza is also 30. The price of a slice of pizza must be
 
  A) 30.
  B) 2.
  C) 1.
  D) some amount that cannot be calculated without more information.

[yasmina]

Answer to Question 1

A

Answer to Question 2

B

[tichca]

Great answer, keep it coming

[lindahyatt42]

Excellent