The Equilibrium Output Produced by a Monopolistic Competitor in the Long

Multiple Choice

The equilibrium output produced by a monopolistic competitor in the long run after the entry of new firms is ________.

A) higher than the equilibrium output produced by the firm before the entry of new firms
B) lower than the equilibrium output produced by the firm before the entry of new firms
C) higher than the equilibrium output produced by a perfectly competitive firm in the long run
D) equal to the equilibrium output produced by the firm before the entry of new firms