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Figure: Firms in Monopolistic Competition
-(Figure: Firms in Monopolistic Competition) Look at the figure Firms in Monopolistic Competition. A long-run equilibrium is illustrated at the profit-maximizing price _____ in panel _____.
A) F; (A)
B) G; (C) H; (
D) I; (

Question

Use the following to answer questions:
Figure: Firms in Monopolistic Competition 
-(Figure: Firms in Monopolistic Competition) Look at the figure Firms in Monopolistic Competition. A long-run equilibrium is illustrated at the profit-maximizing price _____ in panel _____.
A) F; (A)
B) G; (C) H; (
D) I; (

Quizplus · Accepted Answer

In monopolistic competition, long-run equilibrium occurs where the firm's demand curve is tangent to its average total cost curve, indicating zero economic profit. This is shown at price H in panel (B).

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