Which of the following is true of a monopolistically competitive firm in long run equilibrium? Price is greater than marginal cost and marginal revenue is equal to average total cost Price is greater than marginal revenue and marginal cost is equal to average total cost Price is greater than marginal revenue and marginal cost is greater than average total cost O Marginal revenue is equal to marginal cost and price is equal to average total cost Marginal revenue is greater than marginal cost and price is equal to average total cost

Which of the following is true of a monopolistically competitive firm in long run equilibrium? Price is greater than marginal cost and marginal revenue is equal to average total cost Price is greater than marginal revenue and marginal cost is equal to average total cost Price is greater than marginal revenue and marginal cost is greater than average total cost O Marginal revenue is equal to marginal cost and price is equal to average total cost Marginal revenue is greater than marginal cost and price is equal to average total cost

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter10: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 5SQ

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Which of the following statements about a monopolistically competitive firm in long run equilibrium is true? It has excess capacity, even though its long run profits are zero and its output prices equal marginal cost It has excess capacity, and its long run profit is positive, even though its marginal revenue equals marginal cost It has excess capacity, and its output price exceeds its marginal cost, even though its long run profit is zero O It has no excess capacity and its long run profit is zero O It has no excess capacity and its marginal revenue equals its marginal cost
In the above figure, the profit-maximizing output and price for this monopolistically competitive firm are
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