In long-run equilibrium, a monopolistically competitive producer achieves

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In long-run equilibrium, a monopolistically competitive producer does not achieve productive efficiency because they do not produce at the minimum point of their average total cost curve. They also do not achieve allocative efficiency because the price they charge is higher than the marginal cost of production, indicating that not all resources are allocated to their most valued use.

In Long-Run Equilibrium, a Monopolistically Competitive Producer Achieves