In the long run, what level of economic profits can a monopolistic competitor expect to receive?

Name: In the long run, what level of economic profits can a monopolistic competitor expect to receive?
Brand: Quizplus
Rating: 4.8 (50 reviews)

Question

Quizplus · Accepted Answer

In the long run, a monopolistic competitor can expect to receive zero economic profits. This is because new firms will enter the market if there are profits to be made, increasing competition and driving down prices and profits until they reach a normal profit level (zero economic profit).

In the Long Run, What Level of Economic Profits Can