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Commerce · Q280

Economics

Graduate and Post Graduate · Commerce · question 280

Q280

In monopolistic competition, a firm is in long run equilibrium

A.
At the minimum point of the LAC curve
B.
In the declining segment of the LAC curve
Answer
C.
In the rising segment of the LAC curve
D.
When price is equal to marginal cost

Answer: Option B

Solution

Answer: Option B
Solution:
In monopolistic competition, a firm is in long run equilibrium is in the declining segment of the LAC curve.