If a monopolistically competitive firm is in long-run equilibrium,price:
A)equals average total cost.
B)equals marginal cost.
C)equals marginal revenue.
D)is greater than average total cost.

Question

Quizplus · Accepted Answer

In long-run equilibrium, a monopolistically competitive firm will produce at a point where price equals average total cost, ensuring they are making zero economic profit.

If a Monopolistically Competitive Firm Is in Long-Run Equilibrium,price