When a monopolistically competitive firm is in long-run equilibrium,what is the case

Question

Quizplus · Accepted Answer

In long-run equilibrium in a monopolistically competitive market, firms produce at a level where price is equal to average total cost. This is because in the long run, firms can adjust their production levels and firms will enter or exit the market based on profits or losses. As a result, firms in the market will begin to earn only normal profits, where price equals the cost of producing the last unit. This occurs at the level where price equals average total cost. Therefore, choice D is the correct answer.

When a Monopolistically Competitive Firm Is in Long-Run Equilibrium,what Is