Consider a monopolistically competitive industry which is in long-run equilibrium. Which of the following is true?

Question

Consider a monopolistically competitive industry which is in long-run equilibrium.  Which of the following is true?

Accepted Answer

All firms charge a price equal to average total cost.

Answer

All firms charge a price equal to marginal cost.

Answer

Firms have an incentive to enter the industry.

Answer

The demand, average total cost, and marginal cost curves all intersect at the same point.

Answer

All firms make an economic profit.

Crowdly