Answer to Question #210953 in Microeconomics for Momin ali

Question

Draw a diagram of the long run monopolistic competition. How is the price related to average 

total cost? How is price related to marginal cost?

Answer 1

Firms engage in monopolistic competition will continue producing at a level where marginal cost and marginal revenue are equal in the long run. The price of a monopolistically competitive firm’s price equals average total cost, however the price does not equal its marginal cost.

Ref: study.com