Answer to Question #106739 in Microeconomics for rajiv

Question

which of the following statements about the monopolistiocally competitive market in the long run is true ??
1) the marginal revenue curve coincides with the demand curve facing the firm
2) the firms operate on the upward sloping portion of the long run average cost curve
3)the firms make above normal profit in the long run
4) the resources are effeciently utilized
5) the firms produce the outputlevel that is less than the output corresponding to the minimum of average total cost

Answer 1

2) the firms operate on the upward sloping portion of the long run average cost curve