Under monopolistic competition with identical firms, is it possible for a firm to produce at the minimum of its average cost curve Consider the long run, and assume firms are identical terms of their cost structure (e.g., their cost curves are the same). In the long run, for firms in monopolistic competition, producing at minimum average cost A. is possible because each firm will set price equal to marginal cost B. may or may not be possible because the firms' production decisions are interrelated. C. is possible because each firm will charge the same price. D. is not possible because the zero profit condition will be satisfied along the negative sloped portion of the average cost curve. is not possible because demand for each firm's product is horizontal