FIGURE 11- 2
-Refer to Figure 11- 2.Diagram D depicts the only possible long- run equilibrium for a typical firm in

Question

FIGURE 11- 2 
-Refer to Figure 11- 2.Diagram D depicts the only possible long- run equilibrium for a typical firm in

Quizplus · Accepted Answer

In a monopolistically competitive industry, firms can only achieve normal profits in the long run due to the entry of new firms, which erodes any economic profits. Diagram D likely shows a firm making zero economic profit, which is typical in long-run equilibrium for monopolistic competition.