Question

Which of the following statements are true about both monopolistic competition and monopolies? Select all that apply. a) Price equals average total cost in the long run. b) Price is above marginal cost. c) Firms are not price takers. d) Firms earn zero profit in the long run.

Name: which of the following statements are true about both monopolistic competition and monopolies select all that apply a price equals average total cost in the long run b price is above margina 76994
Uploaded: 2023-07-22T22:36:31-08:00
Duration: 1 min 1 s
Channel: Brooke Bussoletti
Description: which of the following statements are true about both monopolistic competition and monopolies select all that apply a price equals average total cost in the long run b price is above margina 76994

          Which of the following statements are true
about both monopolistic
competition and monopolies? Select
all that apply.
a) Price equals average total cost in the long run.
b) Price is above marginal cost.
c) Firms are not price takers.
d) Firms earn zero profit in the long run.

Added by F-Tima G.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Brooke Bussoletti

07/22/2023

Step 1

In monopolies, the firm has market power and can set the price above the marginal cost, which allows it to earn a profit. However, in the long run, the firm's profit-maximizing output level will be where marginal revenue equals marginal cost, which is also where Show more…

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Which of the following statements are true about both monopolistic competition and monopolies? Select all that apply. a) Price equals average total cost in the long run. b) Price is above marginal cost. c) Firms are not price takers. d) Firms earn zero profit in the long run.