In the Long Run in Monopolistic Competition, a Firm Will

Multiple Choice

In the long run in monopolistic competition, a firm will not produce the output level that minimizes average cost because

A) that output level is less than the profit-maximizing one
B) at that output level, MC is greater than MR
C) at that output level, P is greater than MR
D) demand is horizontal
E) that would leave the firm with excess capacity