In the short run, the profits for firms in monopolistic competition tend to be
A)equal to those of monopoly and competition.
B)higher than those of monopoly and competition.
C)lower than those of competition.
D)higher than those of competition.
E)lower than those of monopoly and those of competition.

Question

Quizplus · Accepted Answer

In the short run, firms in monopolistic competition can earn higher profits than those in perfect competition due to product differentiation and some degree of market power.

In the Short Run, the Profits for Firms in Monopolistic