Exhibit 9-3 A monopolistic competitive firm in the long run If all firms in a monopolistic competitive industry have demand and cost curves like those shown in Exhibit 9-3, we would expect that in the long run:
A) a number of new firms will enter the industry.
B) some firms will leave the industry.
C) firms in the industry earn zero economic profits.
D) all firms will leave the industry.

Question

Exhibit 9-3  A monopolistic competitive firm in the long run  If all firms in a monopolistic competitive industry have demand and cost curves like those shown in Exhibit 9-3, we would expect that in the long run:
A) a number of new firms will enter the industry. 
B) some firms will leave the industry. 
C) firms in the industry earn zero economic profits. 
D) all firms will leave the industry.

Quizplus · Accepted Answer

The Answer of Exhibit 9-3  A monopolistic competitive firm in the long run  If all firms in a monopolistic competitive industry have demand and cost curves like those shown in Exhibit 9-3, we would expect that in the long run:
A) a number of new firms will enter the industry. 
B) some firms will leave the industry. 
C) firms in the industry earn zero economic profits. 
D) all firms will leave the industry.

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