If a monopolistically competitive firm's demand curve is shifting left,it will stop shifting when:
A) the price is equal to the firm's marginal cost.
B) the price is equal to the firm's average total cost.
C) the price is the same as what a perfectly competitive firm's price would be.
D) there is no deadweight loss.

Question

Quizplus · Accepted Answer

In monopolistic competition, firms will enter the market until economic profits are zero, which occurs when price equals average total cost.

If a Monopolistically Competitive Firm's Demand Curve Is Shifting Left,it