Long-run equilibrium in a monopolistically competitive market is similar to long-run equilibrium in a perfectly competitive market in that in both markets, firms
A)produce at the minimum point of their average total cost curves.
B)produce where price equals marginal cost.
C)break even.
D)produce where price equals marginal revenue.

Question

Quizplus · Accepted Answer

In long-run equilibrium, both monopolistically competitive and perfectly competitive firms break even, meaning they earn zero economic profit.

Long-Run Equilibrium in a Monopolistically Competitive Market Is Similar to Long-Run