Explain long-run equilibrium

Reference no: EM131443867

Question: The following graph shows the long-run equilibrium for a monopolistically competitive firm.

918_competitive firm.png

a. For this monopolistically competitive firm, what is the profitmaximizing output level and at what price will it sell this output?

b. At profit maximization, explain why this firm is considered to be in long-run equilibrium.

Reference no: EM131443867

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