Question

All of the following are characteristics of long-run equilibrium for firms in a monopolistically competitive market except:

A. price equals marginal cost.
B. price equals average total cost.
C. price exceeds the minimum of average total cost.
D. marginal cost equals marginal revenue.

Answer 1

C. price exceeds the minimum of average total cost.

Step-by-step explanation:

In a monopolistic competitive market, the firm makes profit when MC (Marginal Cost) equals MR (Marginal Revenue). Price also equal average total cost.