Author Question: Which of the following statements regarding the long run for a profit-maximizing monopolistically ... (Read 87 times)

dbose · **on:** Jun 29, 2018

Which of the following statements regarding the long run for a profit-maximizing monopolistically competitive firm is FALSE?

A) The firm is making zero economic profit.
B) The firm produces the quantity of output for which marginal revenue equals marginal cost.
C) The average total cost equals the price.
D) The firm produces the quantity at which the marginal revenue curve intersects the demand curve.

Question 2

In the figure above, if income were distributed equally across all households, the richest 20 percent of households would receive ________ of total income.

A) 45 percent
B) 25 percent
C) 20 percent
D) 15 percent