When a monopolistically competitive firm is in a long-run equilibrium, the values of marginal cost, average total cost, and price are all the same.

Question

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In a long-run equilibrium, a monopolistically competitive firm will produce at a point where price is greater than marginal cost and where price equals average total cost, ensuring zero economic profit, but not where all three values are the same.

When a Monopolistically Competitive Firm Is in a Long-Run Equilibrium