In the long run, a firm operating under monopolistic competition will produce at minimum LRAC.

Name: In the long run, a firm operating under monopolistic competition will produce at minimum LRAC.
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In the long run, a firm operating under monopolistic competition will not produce at the minimum long-run average cost (LRAC) due to product differentiation and the presence of many firms, each with some market power, leading to excess capacity.

In the Long Run, a Firm Operating Under Monopolistic Competition