This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following is true about long-run equilibrium in a monopolistically competitive market? ... (Read 78 times)

captainjonesify

  • Hero Member
  • *****
  • Posts: 543
on: Jun 30, 2018
Which of the following is true about long-run equilibrium in a monopolistically competitive market?
 a. Firms earn zero economic profit because price equals long-run average cost, but the equilibrium is not allocatively efficient because price exceeds the marginal cost of the last unit produced.
  b. They may earn negative, zero, or positive economic profit because monopolistically competitive firms are price takers.
  c. Each firm faces a perfectly elastic demand curve and earns zero economic profit because price equals long-run average cost, and are allocatively efficient because price equals marginal cost for the last unit sold.
  d. None of the above are correct.

Question 2

Movement along an indifference curve causes the loss in marginal utility (MU) of one good to ____ the marginal utility (MU) gained from another good.
 a. exceed
  b. reduce
  c. equal
  d. maximize


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mcni194

  • Sr. Member
  • ****
  • Posts: 311
Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

c


captainjonesify

  • Member
  • Posts: 543
Reply 2 on: Jun 30, 2018
Gracias!

Liddy

  • Member
  • Posts: 342
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

As many as 28% of hospitalized patients requiring mechanical ventilators to help them breathe (for more than 48 hours) will develop ventilator-associated pneumonia. Current therapy involves intravenous antibiotics, but new antibiotics that can be inhaled (and more directly treat the infection) are being developed.

Did you know?

Of the estimated 2 million heroin users in the United States, 600,000–800,000 are considered hardcore addicts. Heroin addiction is considered to be one of the hardest addictions to recover from.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

true story true story
Chemical equilibrium and the law of mass action. Chemical equilibrium and the law of mass action.
A port fuel-injected engine that is equipped with long, tuned intake-manifold runners. A port fuel-injected engine that is equipped with long, tuned intake-manifold runners.
Apply the substance to the arm with long, smooth strokes, then cover the arm and abdomen with the ... Apply the substance to the arm with long, smooth strokes, then cover the arm and abdomen with the ...
Project Management: Achieving Competitive Advantage Project Management: Achieving Competitive Advantage
A pipe that is 0.46 m long and open at both ends vibrates in the second overtone with a ... A pipe that is 0.46 m long and open at both ends vibrates in the second overtone with a ...
Video: Graded potentials - electrical characteristics and types

For a complete list of videos, visit our video library