In the long run, firms in a monopolistically competitive market operate:

Name: In the long run, firms in a monopolistically competitive market operate:
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In a monopolistically competitive market, firms typically operate at less than full capacity because they face downward-sloping demand curves. This means they do not produce where average total cost is minimized, which would be at full capacity, but rather where marginal cost equals marginal revenue, which is usually at a lower quantity.

In the Long Run, Firms in a Monopolistically Competitive Market