In the long run,equilibrium for a monopolistically competitive firm resembles equilibrium for a monopoly in the sense that

Question

Quizplus · Accepted Answer

In the long run, a monopolistically competitive firm will produce where marginal revenue equals marginal cost, which is less than its price. This means that the firm will earn a positive economic profit, similar to a monopoly. Therefore, D is the correct answer.

In the Long Run,equilibrium for a Monopolistically Competitive Firm Resembles