In the long run, under monopolistic competition, when firms advertise,

Name: In the long run, under monopolistic competition, when firms advertise,
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In the long run, under monopolistic competition, firms earn zero economic profit due to the entry of new firms attracted by any short-term profits, which erodes those profits over time. Advertising can increase demand or market share temporarily, but it does not prevent new entrants from driving profits to zero.

In the Long Run, Under Monopolistic Competition, When Firms Advertise