The Equilibrium Price Charged by a Monopolistic Competitor in the Long

Multiple Choice

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

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