Author Question: In the long run in monopolistic competition, a. economic profits are zero. b. P = MC. c. P = ... (Read 67 times)

xroflmao · **on:** Jun 30, 2018

In the long run in monopolistic competition,
a. economic profits are zero.
b. P = MC.
c. P = minimum ATC.
d. firms have an incentive to leave.
e. the demand curve is tangent to the MC curve.

Question 2

Which of the following is an explicit cost?
a. The opportunity cost of an owner/entrepreneur's time invested in the firm.
b. The opportunity cost of the money the business owner/entrepreneur has invested in the firm.
c. The wages paid to workers.
d. None of the above.