Which of the following will not generally be true of a monopolistic competitor operating in the long run?
A) marginal cost exceeds average total cost
B) marginal revenue = marginal cost
C) production in the range of economies of scale
D) price greater than marginal revenue

Question

Quizplus · Accepted Answer

In the long run, a monopolistic competitor will produce where marginal cost equals marginal revenue, and price will be greater than marginal revenue. However, marginal cost will not exceed average total cost, as firms will adjust to ensure they are not operating at a loss.

Which of the Following Will Not Generally Be True of a Monopolistic