Why should I choose AnalystNotes?

AnalystNotes specializes in helping candidates pass. Period.

Find out more

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.
Check Answer Previous Q Next Q Print

User Contributed Comments 2

User Comment
YOUCANDOIT So in long run, price still = ATC but not necessarily at its minimum?
fanDango Correct
You need to log in first to add your comment.
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

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® 2024 Level I Curriculum, Volume 1, Module 1.