Q85When a monopolistically competitive industry is in long-run equilibrium, the excess capacity in an individual firm is indicated by the difference between...a.The output at which ATC is at a minimum and the output at which price equals marginal cost.b.Zero and the output at which the demand curve is tangent to the ATC curve.c.Price and marginal cost.d.Price and average cost.e.The output at which ATC is at a minimum and the output at which marginal revenue is equal to marginal cost.

In a monopolistically competitive market, new firms can enter the market in the long run, which is…

Answered: When a monopolistically competitive…

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Monopolistic Competition

Section: Chapter Questions

Problem 5QCMC

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Q85

When a monopolistically competitive industry is in long-run equilibrium, the excess capacity in an individual firm is indicated by the difference between...

The output at which ATC is at a minimum and the output at which price equals marginal cost.

Zero and the output at which the demand curve is tangent to the ATC curve.

Price and marginal cost.

Price and average cost.

The output at which ATC is at a minimum and the output at which marginal revenue is equal to marginal cost.

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