In the long run, monopolistically competitive firms will not earn economic profits because
A) average total cost will shift up to meet the demand curve.
B) input prices will be bid up.
C) production will not be at minimum average cost.
D) new firms will enter the industry.
Correct Answer:
Verified
Q106: In the short run, a monopolistically competitive
Q107: A monopolistic competitor finds its profit-maximizing rate
Q108: Which of the following statements about a
Q109: In the long run, firms in a
Q110: The long-run equilibrium of monopolistic competition is
Q112: In the long run, if some monopolistically
Q113: In the long run, the monopolistically competitive
Q114: Which will be TRUE for a monopolistic
Q115: In the long run, in a monopolistically
Q116: In the short run, the monopolistic competitor
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents