Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A monopolistically competitive firm is earning positive economic profit. Which of the following must be true? (2 points) The firm is not in long-run equilibrium.

A monopolistically competitive firm is earning positive economic profit. Which of the following must be true? (2 points)

The firm is not in long-run equilibrium.
The firm is not producing where marginal revenue equals marginal cost.
The firm is receiving a per-unit subsidy.
The firm is operating with allocative efficiency.
The firm's price is the level where marginal revenue equals marginal cost.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics Foundations of Business Analysis and Strategy

Authors: Christopher Thomas, S. Charles Maurice

12th edition

1260004759, 9781260004755, 78021715, 78021718, 78021901, 978-0078021909

More Books

Students also viewed these Economics questions

Question

Again, try to justify your findings.

Answered: 1 week ago