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following is not true of a monopolistically competitive firm? a. The firm will not likely earn an economic profit in the long run. b. The firm will maximize profits

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 5P

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Question

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Which of the following is not true of a monopolistically competitive firm?

The firm will not likely earn an economic profit in the long run.

The firm will maximize profits by producing where MR = MC.

The firm will produce an efficient quantity where average total cost is minimized.

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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