The______ of barriers to entry _______ monopolistically competitive firms from earning positive economic profits in the long run.

Question

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A lack of barriers to entry prevents monopolistically competitive firms from earning positive economic profits in the long run. If a firm earns economic profits, other firms could enter the market and offer similar products, driving down demand for the original firm's product and reducing its market share and profits. Therefore, a lack of barriers to entry promotes competition and prevents firms from maintaining long-term economic profits.

The______ of Barriers to Entry _______ Monopolistically Competitive Firms from Earning

The of Barriers to Entry _ Monopolistically Competitive Firms from Earning