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At long run equilibrium, according to the excess-capacity theorem, monopolistically competitive firms produce on the falling portion of their long-run average cost curves. Therefore they

At long run equilibrium, according to the excess-capacity theorem, monopolistically

competitive firms produce on the falling portion of their long-run average cost curves.

Therefore they do not operate at minimum average total cost. What non-price consideration

can offset the higher costs and benefit consumers in monopolistically competitive markets?

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