In the long run, profits in a monopolistic competition market are
Zero because:
A)of government regulations.
B)of collusion.
C)firms are free to enter and exit the market.
D)firms produce a differentiated product.

Question

Quizplus · Accepted Answer

In the long run, the entry and exit of firms in a monopolistic competition market drive economic profits to zero due to increased competition.

In the Long Run, Profits in a Monopolistic Competition Market