Ask Question
BusinessBusiness
16 December, 15:15

Q. Which of the following is true of a monopolistically competitive firm in long-run equilibrium? a. The firm produces the allocatively efficient level of output. b. The firm produces an output level that minimizes average total cost. c. The firm produces in the inelastic range of its demand curve. d. The firm is allocatively inefficient, because it produces an output level at which price is greater than marginal cost.

+2
Answers (1)
  1. 16 December, 19:09
    0
    D) The firm is allocatively inefficient, because it produces an output level at which price is greater than marginal cost.

    Explanation:

    Monopolistic competition refers to a market where several suppliers exist, each supplier will offer a similar but differentiated products than its competitors. For example, restaurants are monopolistic competitors. In monopolistic competition markets there are none or very few entry or exit barriers.

    Monopolistic competition firms are allocatively inefficient because their price is higher than their marginal costs because they are not able to produce at minimum average total cost.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Q. Which of the following is true of a monopolistically competitive firm in long-run equilibrium? a. The firm produces the allocatively ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Assume the following information about the market and JumpMasters' stock. JumpMasters' beta = 1.50, the risk-free rate is 3.50%. Te market risk premium, i. e. the market return in excess of the risk free rate is 10%.
Answers (1)
X-Tel budgets sales of $60,000 for April, $100,000 for May, and $80,000 for June. In addition, sales are 40% cash and 60% on credit. All credit sales are collected in the month following the sale.
Answers (1)
If the absolute value of the price elasticity of demand for a good is. 75, the demand for that good is described asa. normal. b. elastic. c. inferior. d. inelastic.
Answers (1)
A catering service offers 10 appetizers, 11 main courses, and 3 desserts. A customer is to select 6 appetizers, 8 main courses, 2 and desserts for a banquet. In how many ways can this be done
Answers (1)
Which computer applications can Mr. Crowell use to make the classroom learning more stimulating and interesting
Answers (1)
New Questions in Business
Sales and commission are based on selling price, not the costs you have been provided. Labor: 13.8 hours at 18.75 per hour Overhead: 92% of labor Material Costs: $65.
Answers (1)
When airbnb customers in malibu start paying hotel taxes, this will have the potential to raise the equilibrium price in this market and, therefore, decrease efficiency.
Answers (1)
Curtain Co. paid dividends of $14,000; $17,500; and $21,000 during Year 1, Year 2, and Year 3, respectively. The company had 2,400 shares of 7.0%, $100 par value preferred stock outstanding that paid a cumulative dividend.
Answers (1)
In order to accomplish the productivity plan, several Subject Matter Experts from various parts of the organizational have been enlisted. As a result, you have noticed friction and conflict among team members.
Answers (1)
The bond has a coupon rate of 6.83 percent, it makes semiannual payments, and there are 4 months to the next coupon payment. A clean price of $1,049 and the par value is $1,000. What is the invoice price
Answers (1)
Home » Business » Q. Which of the following is true of a monopolistically competitive firm in long-run equilibrium? a. The firm produces the allocatively efficient level of output. b. The firm produces an output level that minimizes average total cost. c.
Sign Up Forgot Password?