Which of the following will not generally be true of a monopolistic competitor operating in the long run?
A) price greater than minimum average total cost
B) price equal to average total cost
C) marginal revenue equal to marginal cost
D) positive economic profits

Question

Quizplus · Accepted Answer

In the long run, monopolistic competition is characterized by zero economic profits as new firms can enter the market and compete away any excess profits. Therefore, a monopolistic competitor operating in the long run is not likely to have positive economic profits. Choices A, B, and C are all possible outcomes for a monopolistic competitor operating in the long run.

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