Question

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that ____________.

Answer 1

P = Average Total Cost

Step-by-step explanation:

Because the market is monopolistically competitive market, one can tell that it is in long run equilibirum by the fact that P = ATC at the optimal quantity. Furthermore, the quantity he firm produces in long run equilibrium is less than efficient scale.