Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. Figure 15.4
-Refer to Figure 15.4. In the long run in this monopolistically competitive industry,

Question

Refer to the information provided in Figure 15.4 below to answer the question(s) that follow.  Figure 15.4
-Refer to Figure 15.4. In the long run in this monopolistically competitive industry,

Quizplus · Accepted Answer

In the long run in a monopolistically competitive industry, firms will enter or exit the market until they are just breaking even, meaning they are making zero economic profit. This occurs because if firms are making profits, new firms will enter, increasing supply and reducing prices and profits until only break-even is possible. Conversely, if firms are making losses, some will exit, reducing supply and increasing prices until the remaining firms break even.

Refer to the Information Provided in Figure 15