Refer to the following graph to answer the following questions:

-The maximum long-run economic profit earned by this monopolistic competitive firm is
A) 0 (zero).
B) $600 per day.
C) $1,200 per day.
D) $1,800 per day.
E) $20 per hour.

Question

Refer to the following graph to answer the following questions:
 
-The maximum long-run economic profit earned by this monopolistic competitive firm is
A) 0 (zero). 
B) $600 per day. 
C) $1,200 per day. 
D) $1,800 per day. 
E) $20 per hour.

Quizplus · Accepted Answer

In the long run, firms in monopolistic competition earn zero economic profit due to the entry and exit of firms, which drives the price down to the average total cost.

Refer to the Following Graph to Answer the Following Questions