A monopolistically competitive firm faces the following demand curve for its product: The firm has total fixed costs of $120 and a constant marginal cost of $12 per unit. We can conclude that
A)firms will exit this market.
B)firms will enter this market.
C)this market is in long-run equilibrium.
D)this firm is operating at its efficient scale.

Question

A monopolistically competitive firm faces the following demand curve for its product:  The firm has total fixed costs of $120 and a constant marginal cost of $12 per unit. We can conclude that
A)firms will exit this market. 
B)firms will enter this market. 
C)this market is in long-run equilibrium. 
D)this firm is operating at its efficient scale.

Quizplus · Accepted Answer

The Answer of A monopolistically competitive firm faces the following demand curve for its product:  The firm has total fixed costs of $120 and a constant marginal cost of $12 per unit. We can conclude that
A)firms will exit this market. 
B)firms will enter this market. 
C)this market is in long-run equilibrium. 
D)this firm is operating at its efficient scale.

A Monopolistically Competitive Firm Faces the Following Demand Curve for Its