When a profit-maximizing firm in monopolistic competition is producing its long-run equilibrium quantity, A) it will...

When a profit-maximizing firm in monopolistic competition is producing its long-run equilibrium quantity,

A) it will be earning economic profit.

B) its price will equal its marginal cost.

C) its price will be equal to its average total cost.

D) its marginal revenue will exceed its marginal cost.

Expert Solution

"C"

in the long run the firm in the market will be producing at the point were the price and ATC will be equal and the firm will only break even.

Rahul Sunny answered 2 years ago

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