CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

In the long run, the price a monopolistic competitor sets is equal to ______.
A. marginal revenue
B. average total cost
C. marginal cost
Explanation: After long-run adjustments have been made, price and quantity fall with firm entry until P = ATC and firms earn zero economic profit.

User Contributed Comments 1

User Comment
danlan For a firm, Average Revenue = Sales/number of goods sold=selling price.
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