What is true of a monopolistically competitivemarket in long-run equilibrium?a. Price is greater than marginal cost.b. Price is equal to marginal revenue.c. Firms make positive economic profits.d. Firms produce at the minimum of average totalcost.

What is true of a monopolistically competitivemarket in long-run equilibrium?a. Price is greater than marginal cost.b. Price is equal to marginal revenue.c. Firms make positive economic profits.d. Firms produce at the minimum of average totalcost.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter14: Monopolistic Competition And Product Differentiation

Section: Chapter Questions

Problem 5P

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Question

What is true of a monopolistically competitive
market in long-run equilibrium?
a. Price is greater than marginal cost.
b. Price is equal to marginal revenue.
c. Firms make positive economic profits.
d. Firms produce at the minimum of average total
cost.

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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