In the long run,a monopolistic competitor:
A) earns a normal rate of return.
B) sells a level of output at which marginal revenue is less than price.
C) sells a level of output at which marginal revenue equals marginal cost.
D) is characterized by all of the above.

Question

Quizplus · Accepted Answer

In the long run, a monopolistic competitor earns a normal rate of return (A), sells output where marginal revenue equals marginal cost (C), and marginal revenue is less than price due to downward-sloping demand (B).

In the Long Run,a Monopolistic Competitor