Which of the following is NOT a characteristic of long-run equilibrium in monopolistic competition?
A) Price exceeds marginal revenue.
B) The firm makes zero economic profit.
C) Production occurs at minimum average total cost.
D) Price is equal to average total cost.
E) Marginal revenue is equal to marginal cost.

Question

Quizplus · Accepted Answer

In long-run equilibrium under monopolistic competition, firms do not necessarily produce at the minimum average total cost due to product differentiation and brand loyalty, which allows them to have some control over their prices.

Which of the Following Is NOT a Characteristic of Long-Run