With monopolistic competition, price exceeds the minimum average total cost in the long run because

0 votes
    firms have a monopoly in the market for their unique product and so have no incentive to reduce costs further.
     zero profits occur at a point above the minimum on the average total cost curve.
     price is always greater than marginal cost.
     the firm wants to maximize the profit per unit produced.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

0 votes
zero profits occur at a point above the minimum on the average total cost curve.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



...