Exhibit 9-2 A monopolistic competitive firm As represented in Exhibit 9-2, the maximum long-run economic profit earned by this monopolistic competitive firm is:

Question

Exhibit 9-2  A monopolistic competitive firm  As represented in Exhibit 9-2, the maximum long-run economic profit earned by this monopolistic competitive firm is:

Quizplus · Accepted Answer

In the long-run, monopolistically competitive firms will produce at the point where price equals average total cost, indicating zero economic profit. In Exhibit 9-2, this occurs at a quantity of 20 units and a price of $10 per unit, resulting in a total revenue of $200 and total cost of $200, yielding zero economic profit.

Exhibit 9-2 a Monopolistic Competitive Firm as Represented in Exhibit