Which of the following will not generally be true of a monopolistic competitor operating in the long run?
A) It will be earning normal profits.
B) Its marginal revenue = marginal cost.
C) Its average total cost will be minimized.
D) Its price will be greater than its marginal cost.

Question

Quizplus · Accepted Answer

In the long run, a monopolistic competitor will not minimize average total cost due to excess capacity; it will produce at a level where average total cost is not at its minimum.

Which of the Following Will Not Generally Be True of a Monopolistic