In the long-run equilibrium of a monopolistically competitive industry, the zero-profit point is to the left of minimum average cost. EXPLAIN. WHY? Explanation with graph:

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 15CTQ: Make a case for why monopolistically competitive industries never reach long-run equilibrium.
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1. In the long-run equilibrium of a monopolistically competitive industry, the zero-profit point is to the left
of minimum average cost. EXPLAIN. WHY? Explanation with graph:

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