Which of the following is not a characteristic of long-run equilibrium in a monopolistically competitive market?
A)Selling price equals average total cost.
B)Production is at minimum average total cost.
C)Marginal revenue equals marginal cost.
D)Selling price is greater than marginal cost.

Question

Quizplus · Accepted Answer

In long-run equilibrium in a monopolistically competitive market, firms do not produce at minimum average total cost due to excess capacity. They produce where average total cost is tangent to the demand curve, which is not at the minimum point of the average total cost curve.

Which of the Following Is Not a Characteristic of Long-Run