In the long run, monopolistically competitive firms are _______ to perfectly competitive firms because _______.

Question

Quizplus · Accepted Answer

In the long run, monopolistically competitive firms and perfectly competitive firms both make zero economic profit due to the entry and exit of firms in the market. This is a characteristic of both market structures that ensures firms only earn a normal profit in the long run.

In the Long Run, Monopolistically Competitive Firms Are _______ to Perfectly