In the long run, the price charged by the monopolistically competitive firm attempting to maximize profits
A) must be less than ATC.
B) must be more than ATC.
C) may be either equal to ATC, less than ATC, or more than ATC.
D) will be equal to ATC.

Question

Quizplus · Accepted Answer

In the long run, a monopolistically competitive firm will earn zero economic profit, meaning the price will equal average total cost (ATC).

In the Long Run, the Price Charged by the Monopolistically