In the long run, a monopolistically competitive firm ________ make an economic profit and a monopoly ________ make an economic profit.

Question

Quizplus · Accepted Answer

In the long run, a monopolistically competitive firm cannot make an economic profit due to the entry of new firms, which erodes profits. However, a monopoly can sustain economic profits in the long run due to barriers to entry that prevent competition.

In the Long Run, a Monopolistically Competitive Firm ________ Make