why-does-price-equal-average-total-cost-in-the-long-run-for-monopolistic-competi

Question

Why does price equal average total cost in the long run for monopolistic competition?

Accepted Answer

Due to the entry and exit of firms, which adjusts supply and demand.

Answer

Due to government price controls.

Answer

Because firms are price takers.

Answer

Because firms collude to set prices.