In the long run, if the demand curve of a monopolistically competitive firm is tangent to its average total cost curve then A. the firm would break even. B. the firm would shut down temporarily. C. the firm would earn enough revenue to cover its variable costs, but not its fixed costs. D. the firm would earn an economic profit.
Added by Brenda R.
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Step 1: If the demand curve of a monopolistically competitive firm is tangent to its average total cost curve, it means that the firm is producing at the minimum point of its average total cost curve. Show more…
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