Price $1.40 $1.00 $0.95 $0.85 $0.60 MR MC ATC D 0 300 500 900 1000 Quantity The monopolistically competitive firm represented in the graph above is in: long-run equilibrium because economic profits are zero at the profit-maximizing output level. short-run equilibrium because price exceeds average total cost at the profit-maximizing output level. both short-run and long-run equilibrium because price exceeds average total cost at the profit-maximizing output level. both short-run and long-run equilibrium because price equals marginal cost at the profit-maximizing output level.
Price $1.40 $1.00 $0.95 $0.85 $0.60 MR MC ATC D 0 300 500 900 1000 Quantity The monopolistically competitive firm represented in the graph above is in: long-run equilibrium because economic profits are zero at the profit-maximizing output level. short-run equilibrium because price exceeds average total cost at the profit-maximizing output level. both short-run and long-run equilibrium because price exceeds average total cost at the profit-maximizing output level. both short-run and long-run equilibrium because price equals marginal cost at the profit-maximizing output level.
Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
Problem 10P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax