In the long run,perfect competitors and monopolistic competitors are similar in that they:
A)set price where MR

Question

In the long run,perfect competitors and monopolistic competitors are similar in that they:
A)set price where MR < MC.
B)produce an output level at which P = ATC.
C)produce a product that is standardized and hard to differentiate.
D)earn a positive economic profit.

Quizplus · Accepted Answer

In the long run, both perfect competitors and monopolistic competitors produce at an output level where price equals average total cost (P = ATC), leading to zero economic profit.

In the Long Run,perfect Competitors and Monopolistic Competitors Are Similar