In the long run, profits will be higher in a monopolistically competitive market than in an oligopoly.

Name: In the long run, profits will be higher in a monopolistically competitive market than in an oligopoly.
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Question

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In an oligopoly market, there are only a few dominant firms who can manipulate prices and restrict output, leading to higher profits. In a monopolistically competitive market, there are many small firms with little market power, leading to lower profits in the long run.

In the Long Run, Profits Will Be Higher in a Monopolistically