In the Long-Run Equilibrium, a Difference Between Monopolistically Competitive Firms

In the long-run equilibrium, a difference between monopolistically competitive firms and perfectly competitive firms is:

A) monopolistically competitive firms produce on the downward sloping section of their ATC curves, while perfectly competitive firms produce at the minimum of ATC
B) monopolistically competitive firms set P=MC, while competitive firms set P=MR
C) individual firm demand slopes down for monopolistically competitive firms, while market demand is horizontal for perfectly competitive markets
D) average total cost is U-shaped for monopolistically competitive firms, while it is downward sloping for perfectly competitive firms

Correct Answer:

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