Asked by Aliyah Grant on Jul 21, 2024
Verified
In the long run,a profit-maximizing monopolistically competitive firm sets it price:
A) above marginal cost.
B) below marginal cost.
C) equal to marginal revenue.
D) equal to marginal cost.
Profit-Maximizing
A strategy or approach used by businesses to determine the price and output level that generates the maximum amount of profit.
Marginal Cost
The cost of producing one additional unit of a product or service.
Marginal Revenue
Marginal revenue is the additional income received from selling one more unit of a good or service, important for businesses in determining optimal production levels.
- Interpret the long-term balance for companies in a monopolistic competition framework, focusing on their profit-making capability and effectiveness in economic terms.
Verified Answer
Learning Objectives
- Interpret the long-term balance for companies in a monopolistic competition framework, focusing on their profit-making capability and effectiveness in economic terms.
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