In the long run, monopolistically competitive firms produce where demand equals average total cost.

Name: In the long run, monopolistically competitive firms produce where demand equals average total cost.
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In the long run, monopolistically competitive firms experience entry and exit until they produce at a point where price equals average total cost (ATC), which is also where demand equals ATC, ensuring zero economic profit.

In the Long Run, Monopolistically Competitive Firms Produce Where Demand