In the long run,a profit-maximizing monopolistically competitive firm sells at a price that is:

Question

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A monopolistically competitive firm maximizes profit by producing where marginal revenue equals marginal cost. However, because the firm has market power, it can set its price above marginal cost. The firm will set a price where price > marginal cost, but not so high that it loses all of its customers to competitors. Therefore, the price charged by a profit-maximizing monopolistically competitive firm is equal to average total cost, but higher than marginal cost.

In the Long Run,a Profit-Maximizing Monopolistically Competitive Firm Sells at a Price