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Basic Question 0 of 7
When a monopolistically competitive industry is in long-run equilibrium, ______
B. price equals minimum average total cost.
C. price equals marginal cost.
A. firms earn zero economic profits.
B. price equals minimum average total cost.
C. price equals marginal cost.
User Contributed Comments 2
| User | Comment |
|---|---|
| YOUCANDOIT | So in long run, price still = ATC but not necessarily at its minimum? |
| fanDango | Correct |
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Lina
Learning Outcome Statements
explain supply and demand relationships under monopolistic competition, including the optimal price and output for firms as well as pricing strategy
CFA® 2024 Level I Curriculum, Volume 1, Module 1.