The Long-Run Equilibrium of a Monopolistic Competitor Differs from the Long-Run

question 96

Multiple Choice

The long-run equilibrium of a monopolistic competitor differs from the long-run equilibrium of a perfect competitor in that

• A) the monopolistic competitor makes economic profits.
• B) the monopolistic competitor sets price equal to marginal cost.
• C) the monopolistic competitor produces at the minimum point of its average total cost curve.
• D) the monopolistic competitor charges a price that exceeds marginal cost.