Which of the following is uncharacteristic of monopolistic competition in the long run?
A) a large number of sellers in the industry
B) zero economic profits
C) price in excess of marginal cost
D) firms have no excess capacity

Question

Quizplus · Accepted Answer

Monopolistic competition in the long run is characterized by zero economic profits and a price that is equal to the average total cost. However, firms in monopolistic competition typically have excess capacity since they produce at a quantity that is less than the one that minimizes average total cost.

Which of the Following Is Uncharacteristic of Monopolistic Competition in the Long