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Basic Question 2 of 4

When a monopolistically competitive industry is in long-run equilibrium, ______

A. firms earn zero economic profits.
B. price equals minimum average total cost.
C. price equals marginal cost.
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User Contributed Comments 2

User Comment
YOUCANDOIT So in long run, price still = ATC but not necessarily at its minimum?
fanDango Correct
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Edward Liu

Edward Liu

Learning Outcome Statements

explain supply and demand relationships under monopolistic competition, including the optimal price and output for firms as well as pricing strategy

CFA® 2025 Level I Curriculum, Volume 1, Module 1.