In the long run,the positive economic profits of Wings N Things,a monopolistic competitor,are

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Quizplus · Accepted Answer

In the long run, the economic profits of a monopolistic competitor are eliminated due to the entry of firms into the industry. This is because the demand curve, although downward sloping due to product differentiation, is not perfectly inelastic. As more firms enter the industry and offer similar products, the monopolistic competitor loses some of its market power and must lower prices, leading to lower economic profits. Thus, option C is the correct answer.

In the Long Run,the Positive Economic Profits of Wings N