-Refer to the above graph of the representative firm in monopolistic competition. The long-run equilibrium price and output for this firm will be:

Question

Quizplus · Accepted Answer

In monopolistic competition, long-run equilibrium occurs where the firm's demand curve is tangent to its average total cost curve, resulting in zero economic profit. This typically corresponds to point A (price) and point D (output) on the graph.

-Refer to the Above Graph of the Representative Firm in Monopolistic