Cecilia's Café operates in a monopolistically competitive market.Cecilia's is currently producing where its average total cost is minimized.In the long run we would expect Cecilia's output to

Question

Quizplus · Accepted Answer

In a monopolistically competitive market, firms in the long run will produce at a level where they earn zero economic profit. This typically means producing at a lower output level than where average total cost is minimized, leading to higher average total costs.

Cecilia's Café Operates in a Monopolistically Competitive Market