If in monopolistic competition in the short run, firms make ________ profits, then in the long run, new firms will enter the market. The ________ each individual firm's product will ________. In the new long-run equilibrium firms will make ________ profit.

Question

Quizplus · Accepted Answer

In monopolistic competition, short-run economic profits attract new firms, increasing competition and decreasing demand for each firm's product, leading to zero economic profit in the long run.

If in Monopolistic Competition in the Short Run, Firms Make