Which of the following is TRUE of firms in both perfect competition and monopolistic competition?
A) The long-run price is equal to marginal revenue, marginal cost, and average total cost.
B) Long-run economic profits are equal to zero.
C) The long-run level of output is at the point where average total cost is minimized.
D) Price is equal to marginal cost, ensuring that the efficient level of output is produced.

Question

Quizplus · Accepted Answer

In both perfect competition and monopolistic competition, firms earn zero economic profits in the long run due to the entry and exit of firms in the market.

Which of the Following Is TRUE of Firms in Both