Question #210953
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?
Expert's answer
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
