In long-run equilibrium,a monopolistically competitive firm's price is equal to its marginal cost.

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In long-run equilibrium, a monopolistically competitive firm's price will be higher than its marginal cost due to the firm's ability to differentiate its product and generate a degree of market power. As other firms enter the market and competition increases, the firm's demand and profits will decrease until it is only earning normal profit and producing at a level where price equals marginal cost.

In Long-Run Equilibrium,a Monopolistically Competitive Firm's Price Is Equal to Its