In the long run, a monopolistically competitive firm earns zero economic profit because its demand curve is tangent to its average fixed cost curve.

Name: In the long run, a monopolistically competitive firm earns zero economic profit because its demand curve is tangent to its average fixed cost curve.
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In the long run, a monopolistically competitive firm earns zero economic profit because its demand curve is tangent to its average total cost curve, not its average fixed cost curve.

In the Long Run, a Monopolistically Competitive Firm Earns Zero