Multiple Choice
In a long-run equilibrium,
A) excess capacity applies to monopolistically competitive firms but not to competitive firms.
B) zero economic profit applies to competitive firms but not to monopolistically competitive firms.
C) markup over marginal cost applies to both monopolistically competitive and competitive firms.
D) product variety externalities apply to both perfectly competitive firms and monopolistically competitive firms.
Correct Answer:
Verified
Correct Answer:
Verified
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