Consider a Monopolistically Competitive Firm in a Market in Long-Run

Consider a monopolistically competitive firm in a market in long-run equilibrium. This firm is likely earning

A) a positive economic profit since it is charging a price above marginal cost.
B) no economic profit since it is charging a price equal to its marginal cost.
C) a positive economic profit since it is charging a price above its average total cost.
D) no economic profit since it is charging a price equal to it average total cost.

Correct Answer:

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