In the long run, monopolistically competitive firms:

Question

a) Produce output at the level that minimizes average total cost

b) Set marginal revenue equal to price.

c) Cannot earn a profit

d) Produce so that marginal cost equals price

Answer 1

c) Cannot earn a profit

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Answer 2

Aint able go over my notes so amma take a Wild guess:

a) Produce output at the level that minimizes average total cost