If the ice cream industry is monopolistically competitive, then:

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In a monopolistically competitive market, firms have some control over the price they charge due to product differentiation, but there is still competition from other firms in the market. In the long run, firms will enter or exit the market until profits are driven to zero. At this point, the price will equal average cost. Therefore, the price of ice cream should equal average cost in long-run equilibrium.

If the Ice Cream Industry Is Monopolistically Competitive, Then