In a monopolistically competitive industry, a firm in long run equilibrium will be operating where price is a. greater than average total cost but equal to marginal cost. b. greater than marginal cost but equal to average total cost. c. less than marginal cost but equal to average total cost. d. equal to average total cost and to marginal cost. e. greater than average total cost and greater than marginal cost.

In a monopolistically competitive industry, a firm in long run equilibrium will be operating where price is a. greater than average total cost but equal to marginal cost. b. greater than marginal cost but equal to average total cost. c. less than marginal cost but equal to average total cost. d. equal to average total cost and to marginal cost. e. greater than average total cost and greater than marginal cost.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter16: Monopolistic Competition

Section: Chapter Questions

Problem 4QCMC

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