When a monopolistically competitive industry is in long-run equilibrium, the excess capacity in an individual firm is indicated by the difference between... a. The output at which ATC is at a minimum and the output at which price equals marginal cost. b. Zero and the output at which the demand curve is tangent to the ATC curve. c. Price and marginal cost. d. Price and average cost. e. The output at which ATC is at a minimum and the output at which marginal revenue is equal to marginal cost.
When a monopolistically competitive industry is in long-run equilibrium, the excess capacity in an individual firm is indicated by the difference between... a. The output at which ATC is at a minimum and the output at which price equals marginal cost. b. Zero and the output at which the demand curve is tangent to the ATC curve. c. Price and marginal cost. d. Price and average cost. e. The output at which ATC is at a minimum and the output at which marginal revenue is equal to marginal cost.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Q85
When a monopolistically competitive industry is in long-run equilibrium, the excess capacity in an individual firm is indicated by the difference between...
a.
The output at which ATC is at a minimum and the output at which price equals marginal cost.
b.
Zero and the output at which the demand curve is tangent to the ATC curve.
c.
Price and marginal cost.
d.
Price and average cost.
e.
The output at which ATC is at a minimum and the output at which marginal revenue is equal to marginal cost.
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