Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. Figure 15.5
-Refer to Figure 15.5. In the long run in this monopolistically competitive industry,

Question

Refer to the information provided in Figure 15.5 below to answer the question(s) that follow.  Figure 15.5
-Refer to Figure 15.5. 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 earn just a normal profit, meaning zero economic profit. This occurs as firms enter the market when there are profits, increasing competition and reducing prices and profits, or exit when there are losses, reducing competition and increasing prices and profits, until only normal profit is earned.

Refer to the Information Provided in Figure 15