In the long run, economic profits in a monopolistically competitive market are zero.

Name: In the long run, economic profits in a monopolistically competitive market are zero.
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In the long run, monopolistically competitive firms will have zero economic profits due to the entry of new firms attracted by profit opportunities. This entry will increase competition and drive down demand and prices, ultimately eroding any economic profits. However, firms may still earn normal profits.

In the Long Run, Economic Profits in a Monopolistically Competitive