In the long run,a monopolistically competitive firm will make the same economic profit as

Question

Quizplus · Accepted Answer

In long-run equilibrium, a monopolistically competitive firm produces where its marginal revenue equals its marginal cost, which is also equal to its average total cost. This results in zero economic profit, which is the same as the long-run equilibrium for a perfectly competitive firm. Therefore, the answer is D - a monopolistically competitive firm will make the same economic profit as a perfectly competitive firm in the long run.

In the Long Run,a Monopolistically Competitive Firm Will Make the Same