Exhibit 9-3 A monopolistic competitive firm in the long run As represented in Exhibit 9-3, the maximum long-run economic profit earned by this monopolistic competitive firm is:
A) zero.
B) $10 per week.
C) $4,000 per week.
D) $40,000 per week.

Question

Exhibit 9-3  A monopolistic competitive firm in the long run  As represented in Exhibit 9-3, the maximum long-run economic profit earned by this monopolistic competitive firm is:
A) zero. 
B) $10 per week. 
C) $4,000 per week. 
D) $40,000 per week.

Quizplus · Accepted Answer

In the long run, firms in a monopolistically competitive market will enter or exit until economic profits are driven to zero. Therefore, the maximum long-run economic profit earned by this monopolistic competitive firm is zero.

Exhibit 9-3 a Monopolistic Competitive Firm in the Long Run