At the profitmaximizing output, the monopolistically competitive firm inExhibit 103 is in
A)longrun equilibrium because price equals average total cost
B)longrun equilibrium because price is less than average total cost
C)shortrun equilibrium because price is greater than average total cost
D)shortrun equilibrium because there is an economic loss
E)shortrun equilibrium because there is zero economic profit

Question

At the profit­maximizing output, the monopolistically competitive firm inExhibit 10­3 is in
A)long­run equilibrium because price equals average total cost 
B)long­run equilibrium because price is less than average total cost 
C)short­run equilibrium because price is greater than average total cost 
D)short­run equilibrium because there is an economic loss 
E)short­run equilibrium because there is zero economic profit

Quizplus · Accepted Answer

The Answer of  At the profit­maximizing output, the monopolistically competitive firm inExhibit 10­3 is in
A)long­run equilibrium because price equals average total cost 
B)long­run equilibrium because price is less than average total cost 
C)short­run equilibrium because price is greater than average total cost 
D)short­run equilibrium because there is an economic loss 
E)short­run equilibrium because there is zero economic profit

At the Profit­maximizing Output, the Monopolistically Competitive Firm InExhibit 10­3

At the Profitmaximizing Output, the Monopolistically Competitive Firm InExhibit 103