Both the perfect competitor and the monopolistic competitor will produce at the point where average total cost is minimized.

Name: Both the perfect competitor and the monopolistic competitor will produce at the point where average total cost is minimized.
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Question

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In perfect competition, firms produce where average total cost is minimized in the long run. However, in monopolistic competition, firms do not produce at the minimum average total cost due to product differentiation and excess capacity.

Both the Perfect Competitor and the Monopolistic Competitor Will Produce