In the long run, the price charged by a monopolistically competitive firm seeking to maximize profit will <u>exceed MC but equal ATC</u>.
<h3>What is monopolistic competition in the long run?</h3>
Long-term Monopolistic Competition In contrast to perfectly competitive firms, monopolistically competitive firms ultimately decide on an output level below their minimal efficient scale, denoted in Figure as point b. The firm is underutilizing its available resources when it produces below its minimum efficient scale.
<h3>What is excess capacity of a monopolistically competitive firm?</h3>
surplus capacity in contrast to perfectly competitive firms, monopolistically competitive firms ultimately decide on an output level below their minimal efficient scale, denoted in Figure as point b. The firm is underutilizing its available resources when it produces below its minimum efficient scale.
<h3>What are the conditions for price to be equal to cost?</h3>
Price times quantity produced must be more than total variable costs for a certain level of output in order to prevent the short-term failure of the business. Price could be larger than, lower than, or equal to the average overall cost.
Learn more about monopolistic competition in the long run:
<u><em>brainly.com/question/25783852</em></u>
#SPJ4
