3. Which of the following describes long run equilibrium for a firm in monopolistic competition with free entry?
  1. Marginal Revenue = Average Total Cost, Price > Marginal Cost.
  2. Price > Average Total Cost, Price = Marginal Cost.
  3. Price > Average Total Cost, Marginal Revenue = Marginal Cost.
  4. Price = Average Total Cost, Marginal Revenue > Marginal Cost.
  5. Price = Average Total Cost, Price > Marginal Cost.

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