In long-run equilibrium,a monopolistically competitive firm's marginal revenue is equal to its marginal cost.

Question

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In the long-run, monopolistically competitive firms will adjust their prices and output levels until they have zero economic profits. This means that their marginal revenue will be equal to their long-run average total cost, which is equal to their marginal cost in the long-run equilibrium. Therefore, in long-run equilibrium, a monopolistically competitive firm's marginal revenue is equal to its marginal cost.

In Long-Run Equilibrium,a Monopolistically Competitive Firm's Marginal Revenue Is Equal