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Which of the following is not characteristic of long-run equilibrium under monopolistic competition? Price equals minimum average total cost. marginal cost equals marginal revenue. Price is equal to average total cost. Price exceeds marginal cost.

User Justinsg
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Answer:

Price equals minimum average total cost.

Step-by-step explanation:

A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes.

Monopolistic competition can be defined as the market structure which comprises of elements of competitive markets (having many competitors) and monopoly.

Under monopolistic competition, organizations earn profits in the long-run equilibrium.

In long-run equilibrium under monopolistic competition, price does not equal minimum average total cost.

When a monopolistically competitive firm is in long-run equilibrium, marginal revenue is equal to marginal cost . This ultimately implies that in the long-run, firms engaging in monopolistic competitive market are often going to manufacture the quantity of goods where the marginal cost (MC) curve intersect with the marginal revenue (MR). Also, the price set would be greater than the minimum average total cost (ATC).

User Sklavit
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