In a long-run equilibrium, both perfectly competitive markets and monopolistically competitive markets have price equal to average total cost.

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In the long-run equilibrium, perfectly competitive markets achieve a point where price equals average total cost due to free entry and exit of firms, ensuring no economic profits. Similarly, monopolistically competitive markets also adjust to a point where price equals average total cost in the long run, as firms enter and exit the market based on the presence of profits or losses, leading to a situation where firms just cover their costs, including normal profit.

In a Long-Run Equilibrium, Both Perfectly Competitive Markets and Monopolistically