In the short run, the monopolistic competitive firm will charge a price equal to marginal cost.

Name: In the short run, the monopolistic competitive firm will charge a price equal to marginal cost.
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In the short run, the monopolistically competitive firm will charge a price above the marginal cost, but not as high as a monopolist. The firm will aim to maximize profits, which may require setting a price that is higher than the marginal cost but lower than the price charged by a monopoly.

In the Short Run, the Monopolistic Competitive Firm Will Charge