Which of the following statements is false about the long-run equilibrium in monopolistic competition?
1
Firms produce where marginal revenue equals marginal cost.
2
Firms produce at a point where price exceeds marginal cost, leading to allocative inefficiency.
3
Firms operate at excess capacity in the long run.
4
The long-run equilibrium output is at the minimum point of the average total cost curve, ensuring productive efficiency.
5
Question Not Attempted