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
D)differentiate.earn a positive economic profit.

Quizplus · Accepted Answer

Perfect competitors and monopolistic competitors are similar in that they both produce an output level at which P = ATC in the long run. This is because in the long run, both types of firms will enter or exit the market until the price is equal to the average total cost of production.

In the Long Run, Perfect Competitors and Monopolistic Competitors Are