In a monopolistically competitive market equilibrium, the price is equal to the marginal cost.

Name: In a monopolistically competitive market equilibrium, the price is equal to the marginal cost.
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In a monopolistically competitive market equilibrium, the price is higher than the marginal cost due to product differentiation and non-price competition. However, the price is not as high as it would be in a pure monopoly situation.

In a Monopolistically Competitive Market Equilibrium, the Price Is Equal