In the long-run equilibrium, both the perfectly competitive firm and the monopolistically competitive firm produce the output at which MR = MC and charge a price equal to the average total cost of production.

Question

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In the long-run equilibrium, both types of firms produce where marginal revenue (MR) equals marginal cost (MC), and they charge a price equal to average total cost (ATC), ensuring zero economic profit.

In the Long-Run Equilibrium, Both the Perfectly Competitive Firm and the Monopolistically