In the long run,a monopolistic competitor's price will equal:
A) marginal revenue.
B) average total cost.
C) marginal cost.
D) minimum average total cost.

Question

Quizplus · Accepted Answer

In the long run, a monopolistic competitor will set its price equal to average total cost to earn zero economic profit, as new firms enter the market if there are profits, driving prices down to the level of average total cost.

In the Long Run,a Monopolistic Competitor's Price Will Equal