Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact thatfirm. Further, a monopolistically competitive firm's average total cost in long-run equilibrium isTrue or False: This indicates that there is a markup on marginal cost in the market for jackets.O TrueO Falseat the optimal quantity for eachthe minimum average total cost.Monopolistically competitive markets may be socially inefficient due to the presence of too many or too few firms. The presence of theexternality implies that there is too little entry of new firms in the market. 4. Is monopolistic competition efficient?Suppose that a company operates in the monopolistically competitive market for denim jackets. The following graph shows the demand curve,marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve for the firm.Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next,place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost.PRCE (Dollars per jacket)2882332RR100906050200Mto1010ATCMR20 30 40 50 00 70QUANTITY (Thousands of jackets)Demand8090 100Mon Comp OutcomeMin Unit Cost

Monopolistic competition is having large producers selling differentiated products to each other…

Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that, at the optimal quantity for each the minimum average total cost. firm. Further, a monopolistically competitive firm's average total cost in long-run equilibrium is True or False: This indicates that there is a markup on marginal cost in the market for jackets. O True O False Monopolistically competitive markets may be socially inefficient due to the presence of too many or too few firms. The presence of the externality implies that there is too little entry of new firms in the market.

Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that, at the optimal quantity for each the minimum average total cost. firm. Further, a monopolistically competitive firm's average total cost in long-run equilibrium is True or False: This indicates that there is a markup on marginal cost in the market for jackets. O True O False Monopolistically competitive markets may be socially inefficient due to the presence of too many or too few firms. The presence of the externality implies that there is too little entry of new firms in the market.