Long-run equilibrium in a monopolistically competitive market satisfies all of the following conditions,except:

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In a monopolistically competitive market, firms have some market power and can choose to set prices above marginal cost. Therefore, long-run equilibrium does not necessarily require that price equals marginal cost. Instead, firms will set prices based on the level of competition they face and their own costs, which can result in prices that are above or below marginal cost. However, in long-run equilibrium, firms will produce at the level where marginal revenue equals marginal cost, and they will earn zero economic profit due to the presence of entry and exit barriers. The market will also have excess capacity, meaning that firms will not be producing at the minimum efficient scale of production.

Long-Run Equilibrium in a Monopolistically Competitive Market Satisfies All of the Following