why-do-firms-in-monopolistic-competition-not-produce-at-the-minimum-average-tota

Question

Why do firms in monopolistic competition not produce at the minimum average total cost in the long run?

Accepted Answer

Because they face a downward-sloping demand curve.

Answer

Because they have no competition.

Answer

Because they are regulated by the government.

Answer

Because they aim to maximize revenue instead of profit.