The two basic conditions for long-run equilibrium in monopolistically competitive markets are that
A) all firms maximize profits and that economic profits are zero.
B) price exceeds average cost for all firms and that they have no additional production capacity.
C) firms constantly enter and leave the market because of the existence of economic profits.
D) all firms cover their average variable costs and that marginal revenue equals total revenue.
E) all firms maximize output while minimizing unit costs.
Correct Answer:
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