Entry of new firms will occur in a monopolistic competitive industry until:
A) marginal cost equals zero.
B) marginal revenue equals zero.
C) marginal revenue equals marginal cost.
D) economic profit equals zero.
E) economic profit is negative.

Question

Quizplus · Accepted Answer

In a monopolistic competitive industry, new firms will enter the market until economic profit is zero, meaning firms are earning a normal profit.

Entry of New Firms Will Occur in a Monopolistic Competitive