Within a monopolistically competitive industry, it would be expected that: O in

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Within a monopolistically competitive industry, it would be expected that: O in the short-run, an innovative firm's price is greater than their average cost. O firms make a positive economic proft in the long- O firms most likely make economic losses in the O in the long-run, a typical firm's price is greater than run. short-run. their average cost. D Question 18 5 pts the long-run, it would be expected that: O firms are always producing at the lowest possible average cost that technology allows. O price is greater than marginal cost. O price is equal to marginal cost. O productive efficiency is attained

Explanation / Answer

Answer

option second

The monopoly in long run also produces at MC=MR whereas the demand curve is downward sloping and the MR curve is double sloped than demand curve so the MR is smaller than P and which means P>MC=MR
and the efficiency is attained producing at MC=ATC

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