Which of the following is true about a monopolistically competitive firm in the long run?
A)It is as efficient as a purely competitive firm.
B)It tends to realize only a normal profit.
C)It produces at the level where costs are minimized.
D)It will practice marginal cost pricing.

Question

Quizplus · Accepted Answer

In the long run, monopolistically competitive firms tend to realize only a normal profit, as entry and exit of firms leads to competition that drives economic profit to zero.

Which of the Following Is True About a Monopolistically Competitive