The process of entry and exit into a monopolistically competitive market continues until:

Name: The process of entry and exit into a monopolistically competitive market continues until:
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Question

Quizplus · Accepted Answer

In a monopolistically competitive market, firms enter and exit the market until they reach a point where economic profits are zero, which is the long-run equilibrium. This occurs when the price equals the average total cost. Therefore, all the given options are aspects of the same equilibrium condition.

The Process of Entry and Exit into a Monopolistically Competitive