Question

    A monopolized market is in long-run equilibrium

    when
    A zero economic profit is earned by the monopolist. Correct Answer Incorrect Answer
    B production takes place where price is equal to long-run marginal cost and long-run average cost. Correct Answer Incorrect Answer
    C production takes place where long-run marginal cost is equal to marginal revenue and price is not below long-run average cost. Correct Answer Incorrect Answer
    D All of the above are correct. Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    A monopolized market is in long-run equilibrium when production takes place where long-run marginal cost is equal to marginal revenue and price is not below long-run average cost.

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