In the Long Run, a Monopolistically Competitive Firm Produces with Excess

Multiple Choice

In the long run, a monopolistically competitive firm produces with excess capacity because the

A) firm is producing too much output to maximize profit.
B) firm does not produce at the point at which marginal cost is minimized.
C) long-run output level occurs at the point at which average total cost is falling.
D) firm could produce more and reduce average fixed cost.
E) firm fails to minimize average fixed costs.