In the long run,the profit-maximizing output of a monopolistically competitive firm _____

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In the long run, a monopolistically competitive firm produces at a point where its price is greater than its marginal cost. This leads to excess capacity, as the firm could produce more output without incurring much additional cost. In contrast, a perfectly competitive firm produces at a point where price equals marginal cost and operates at maximum efficiency, producing the quantity where the cost is lowest. Therefore, the profit-maximizing output of a monopolistically competitive firm is less than that of an otherwise similar perfectly competitive firm.

In the Long Run,the Profit-Maximizing Output of a Monopolistically Competitive