In the long run,monopolistically competitive firms:

A) produce at the level that minimizes average total cost.
B) set marginal revenue equal to price.
C) cannot earn an economic profit.
D) produce such that marginal cost equals price.

Long Run

A period in which all factors of production and costs are variable, allowing companies to adjust to changes in the market.

Monopolistically Competitive

A market structure where many competing producers sell products that are differentiated from one another (e.g., by branding or quality) and hence are not perfect substitutes.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, measuring the firm’s performance beyond its accounting profit.