In the long-run equilibrium in a monopolistic market, a profit-maximising firm will see the price lower than average total cost.

Question

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In the long-run equilibrium in a monopolistic market, a profit-maximizing firm will set the price above average total cost, allowing it to earn a positive economic profit due to lack of perfect competition and presence of barriers to entry that prevent new firms from entering the market and driving profits to zero.

In the Long-Run Equilibrium in a Monopolistic Market, a Profit-Maximising