Long-run equilibrium under monopolistic competition is similar to long-run equilibrium under perfect competition in that
A) firms produce at the minimum point of their average cost curves.
B) price equals marginal cost.
C) firms break even.
D) price equals marginal revenue.

Question

Quizplus · Accepted Answer

In the long-run equilibrium, both monopolistic and perfect competition result in firms breaking even, meaning they earn zero economic profit.

Long-Run Equilibrium Under Monopolistic Competition Is Similar to Long-Run Equilibrium