Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that (P>ATC, MR=MC, MR>MC, P=ATC) at the optimal quantity for each firm. Furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium is (less than, greater than, equal to) the minimum average total cost.True or False: This indicates that there is excess capacity in the market for bats.Monopolistic competition may also be socially inefficient because these are too many or too few firms in the market. The presence of the (business-stealing, product variety) externality implies that there is too much entry of new firms in the market.
