Asked by
Kristina Johnson
on Nov 26, 2024
Verified
Long-run equilibrium for a monopolistically competitive firm where economic profits are zero results from
A) rising marginal costs.
B) a perfectly elastic product demand curve.
C) relatively easy entry.
D) product differentiation and development.
Economic Profits
The excess amount after subtracting total expenses from total revenues, considering both explicit and implicit costs.
- Understand the effects of market entry and exit on demand and market equilibrium.
- Comprehend the conditions necessary for long-run equilibrium in monopolistically competitive markets.
Verified Answer
JS
Learning Objectives
- Understand the effects of market entry and exit on demand and market equilibrium.
- Comprehend the conditions necessary for long-run equilibrium in monopolistically competitive markets.
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