The monopolistic competitive firm will most likely earn a normal profit in the long run because of
A)product differentiation.
B)many buyers and sellers.
C)easy entry and exit.
D)high barriers to entry.

Question

Quizplus · Accepted Answer

In the long run, easy entry and exit in monopolistic competition allow new firms to enter the market if existing firms are earning above-normal profits, driving profits down to normal levels.

The Monopolistic Competitive Firm Will Most Likely Earn a Normal