-In a monopolistically competitive industry, the firms are currently making an economic profit. When this market moves to its long-run equilibrium, the firms' demand curves will have ________ and their economic profit will have ________.

Question

Quizplus · Accepted Answer

In the long run, new firms enter the market due to the presence of economic profits, causing the demand curve for existing firms to shift leftward. This entry continues until economic profits are eliminated, resulting in zero economic profit in long-run equilibrium.

-In a Monopolistically Competitive Industry, the Firms Are Currently Making