Question

g When a monopolistically competitive industry is in long-run equilibrium: Multiple Choice price equals marginal cost. firms earn zero economic profits. firms earn economic profits. price equals minimum average total cost.

Answer 1

Answer:

price equals minimum average total cost

Explanation:

As we know that in the short run, the firms earns the economic profit but in the long run  when a new firm is entered into the indusry and there is a market share so the demand of the market is to be shared by each firm due to which the demand would be less

So this represents that price is equivalent to the average total cost

Hence, the last option is correct