A profit-maximizing firm operating in a monopolistically competitive market that is in a long-run equilibrium has
A)minimized average total cost.
B)chosen to produce where demand is unitary elastic.
C)produced the efficient scale of output.
D)chosen a quantity of output where average revenue equals average total cost.

Question

Quizplus · Accepted Answer

In long-run equilibrium, a monopolistically competitive firm produces where average revenue equals average total cost, resulting in zero economic profit.

A Profit-Maximizing Firm Operating in a Monopolistically Competitive Market That