How is long-run equilibrium under monopolistic competition similar to long-run equilibrium under perfect competition?
A)Firms produce at the minimum point of their average cost curves.
B)Price equals marginal cost.
C)Firms break even.
D)Price equals marginal revenue.

Question

Quizplus · Accepted Answer

In both monopolistic and perfect competition, firms break even in the long run, meaning they earn zero economic profit.

How Is Long-Run Equilibrium Under Monopolistic Competition Similar to Long-Run