how-does-the-long-run-equilibrium-in-monopolistic-competition-differ-from-that-i

Question

How does the long run equilibrium in monopolistic competition differ from that in perfect competition?

Accepted Answer

In monopolistic competition, price equals average total cost but not at the minimum point.

Answer

In perfect competition, firms have excess capacity.

Answer

In monopolistic competition, firms produce at minimum average total cost.

Answer

In monopolistic competition, firms earn positive economic profit in the long run.