Which of the following is true about a firm in monopolistic competition in the long run?

In the long run, a firm in monopolistic competition maximizes its profit at a point where price is equal to average total cost but the average total cost is not minimized. In the long run, a firm in monopolistic competition makes zero economic profit and its price is equal to the minimum average total cost.

Which of the following is a difference between a perfectly competitive and a monopolistically competitive firm?

Monopolistically competitive firms operate where price is greater than marginal cost. One difference between perfectly competitive firms in monopolistically competitive firms is that monopolistically competitive firms operate were price is greater than marginal cost.

Which of the following is true of both monopolistically competitive and perfectly competitive firms?

The correct answer is C. Marginal revenue is equal to marginal cost. Both, monopoly and perfect competition, maximize profits when firms produce the…

Which is true of a firm in monopolistic competition in the long run but not true of perfect competition in the long run?

Which of the following is true of the long run in perfect competition but NOT true of the long run in monopolistic competition? The firm produces where ATC is minimized. In the oil change market, monopolistic competition prevails. … The firm will produce at a point where price equals marginal cost.

Which of the following statements is true for a perfectly competitive firm but not true for a monopoly?

The correct answer is b. The firm cannot affect the market price for its good. In a perfectly competitive market, a single firm cannot influence the market price. … It is not true in a monopoly because the seller can easily influence price.

What is true of a monopolistically competitive market in long run equilibrium?

Long Run Equilibrium of Monopolistic Competition: In the long run, a firm in a monopolistic competitive market will product the amount of goods where the long run marginal cost (LRMC) curve intersects marginal revenue (MR). The price will be set where the quantity produced falls on the average revenue (AR) curve.

Which of the following must be true if a profit maximizing monopolistically competitive firm?

Which of the following must be true if a profit-maximizing monopolistically competitive firm continues to operate in the short run while incurring a loss? Marginal revenue equals marginal cost and price is greater than average variable cost.

Which of the following is true when a perfectly competitive firm is in long run equilibrium?

The long-run equilibrium of a perfectly competitive market occurs when marginal revenue equals marginal costs, which is also equal to average total costs.

Which of the following is true in imperfectly competitive markets?

Which of the following is true in imperfectly competitive markets? Firms must lower their product prices to sell additional units. Which of the following is true of a natural monopoly? The average total cost decreases throughout the entire effective demand.

In what way does long run equilibrium under monopolistic competition differ from long run equilibrium under perfect competition?

Another important difference between the equilibrium under monopolistic competition and perfect competition is that whereas a firm in long-run equilibrium under monopolistic competition produces less than its optimum size of output, under perfect competition long-run equilibrium of the firm is established at the …

How does the long run equilibrium for a monopolistically competitive market differ from the long run equilibrium for a perfectly competitive market?

In a perfectly competitive market, price equals marginal cost and firms earn an economic profit of zero. In a monopoly, the price is set above marginal cost and the firm earns a positive economic profit. … in long-run equilibrium, firms earn zero economic profits.

Which of the following is true about an imperfectly competitive firms marginal revenue curve if it has a linear and downward sloping demand curve?

Which of the following is true about an imperfectly competitive firm’s marginal revenue (MR) curve if it has a linear and downward-sloping demand curve? … Monopoly produces a lower quantity and charges a higher price than in perfect competition.

What is imperfect competitive market?

Definition: Imperfect competition is a competitive market situation where there are many sellers, but they are selling heterogeneous (dissimilar) goods as opposed to the perfect competitive market scenario. … If a seller is selling a non identical good in the market, then he can raise the prices and earn profits.

Which of the following is a form of imperfect competition?

Answer: Monopoly is a form of imperfect competition..

What is true about price and average revenue in imperfect competition?

In the imperfect competition market, both Average revenue curve and Marginal revenue curve slope downwards from left to right. Also, the Marginal revenue curve is always below the Average Revenue curve. At some point, marginal revenue may also be zero and then negative. However, Average revenue will always be positive.

Which of the following is a true statement about the long run supply curve for a perfectly competitive industry?

Which of the following is a true statement about the long-run supply curve for a perfectly competitive industry? The long-run supply curve shows the minimum cost for the last firm to enter the industry.

What is marginal revenue in imperfect competition?

Definition: marginal revenue = amount received. from selling one more unit of product. Firm with downward-sloping. demand curve.

Which of the following statement is true regarding the price in a perfectly competitive market?

The correct option is (d) Price is equal to both the average and marginal revenue. In the scenario of a perfectly competitive market, every seller…

Which is true for a monopolist?

Characteristics of a True Monopolist

The primary concern of a monopolist is to maximize profits at all costs. A monopolist will have the power to arbitrarily decide the price of the goods or products to be sold.

Which of the following is not true regarding perfect competition?

Which of the following is NOT true regarding perfectly competive markets? … The market contains many buyers and sellers. It is difficult or impossible for a firm to enter and compete in the market.

Which of the following statements is true when a monopolist is at its profit maximizing level of output?

When a monopolist is at its profit-maximizing level of output, which of the following statements is true? A monopolist is producing in the inelastic portion of the market demand curve. It is unable to price discriminate.

Which of the following statement is true in the short run?

In short run, all the factors of production are fixed.

Which of the following is correct for a monopolist and monopolistically competitive firm?

Which of the following is correct for a monopolist and monopolistically competitive firm? A monopolist and monopolistically competitive firm each maximize profits when marginal revenue is equal to marginal cost.

Which of the following is true for a monopolist at the output level where P MC?

Which of the following is true at the output level where P=MC? The monopolist is not maximizing profit and should decrease output. At P = MC, the monopolist is producing the perfect competition output level.