Question

For the following characteristic say whether it describes a perfectly competitive firm, a monopolistically competitive firm, monopoly firm, or neither.

a. Has marginal revenue less than price. I would think this would be neither.

b. Produces at minimum of average total cost in the long run. I would think that it would be a perfectly competitive firm.

a) MR < price is typical for a monopoly or monopolistically competitive firm. Draw a graph of a monopolist.

b) correct.

Thanks for the help.