In the long run,
A) monopolistically competitive firms earn a higher profit than perfectly competitive firms because monopolistically competitive firms have some monopoly power.
B) monopolistically competitive firms produce a higher output than perfectly competitive firms because competition drives the perfectly competitive firms' output down.
C) both monopolistically competitive and perfectly competitive firms produce where P = MC.
D) both monopolistically competitive and perfectly competitive firms produce where P = ATd.
Correct Answer:
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