Recall the Application about the costs involved in opening a motel to answer the following question(s).
-Recall the Application.What should an owner of a Motel 6 expect in a monopolistically competitive market?

Question

Quizplus · Accepted Answer

In a monopolistically competitive market, firms face keen competition for consumers due to the presence of many competitors offering differentiated products. Over the long run, firms can expect to earn zero economic profit as any short-term profits attract new entrants, increasing competition and driving down prices. Thus, total revenue will equal total cost in the long run, making all of the statements correct.

Recall the Application About the Costs Involved in Opening a Motel