Which of the following is true of the long-run equilibrium in a monopolistically competitive market?

Question

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In the long-run equilibrium of a monopolistically competitive market, firms face a downward-sloping demand curve and have excess capacity. This means they do not produce at the minimum average total cost, which is characteristic of productive inefficiency. Unlike perfect competition, where firms produce at the lowest point of the average total cost curve in the long run, monopolistically competitive firms have differentiated products and some degree of market power, leading to a situation where they do not achieve productive efficiency.

Which of the Following Is True of the Long-Run Equilibrium