Firm in perfectly competitive market

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Reference no: EM131392790

Which of the following is a true statement about the long run difference between a firm in a perfectly competitive market and a firm in a monopolistically competitive market?

a. Only the firm in the monopolistically competitive market will sell its product at a price equal to average total cost.

b. Both will sell their products at a price equal to average total cost, but only the firm in the perfectly competitive market will produce at minimum average total cost.

c. Both will sell their products at a price equal to average total cost, but only the firm in the monopolistically competitive market will produce at minimum average total cost.

d. Only the firm in the perfectly competitive market will sell its product at a price equal to average total cost.

Reference no: EM131392790

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