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Within a Monopolistically Competitive Industry

Question 4

Multiple Choice

Within a monopolistically competitive industry,


A) firms can freely enter and exit,and economic profit is zero in the long run.
B) firms can freely enter and exit,and economic profit is greater than zero in the long run.
C) there are some barriers to entry and exit,and economic profit is zero in the long run.
D) there are some barriers to entry and exit,and economic profit is greater than zero in the long run.
E) firms can freely enter and exit,and economic profit is zero in the short run.

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