Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
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Question
Chapter P3, Problem 8KC
To determine
The long run profit of the monopolistically competitive firm.
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Consider perfect competition and monopolistic competition. In which market structure(s) will we see price equal to marginal cost at the last unit produced in the long-run equilibrium?
a
perfect competition
b
monopolistic competition
c
both perfect and monopolistic competition
d
neither
Consider perfect competition and monopolistic competition. In which market structure(s) will we see firms trending toward zero economic profits in the long-run equilibrium?
a
perfect competition
b
monopolistic competition
c
both perfect and monopolistic competition
d
neither
Which of these markets is most likely to be identified as monopolistic competition?
Group of answer choices
a. shoes
b. corn
c. gasoline
d. shoes, corn and gasoline are all like monopolistic competition
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