A firm in long-run equilibrium under monopolistic competition will earn
A) zero economic profits because of free entry.
B) positive monopoly profits because each sells a differentiated product.
C) positive oligopoly profits because each firm sells a differentiated product.
D) negative economic profits because it has economies of scale.
E) positive economic profit if it engages in international trade.
Correct Answer:
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Q12: Under the model of monopolistic competition, a(an)
Q22: Q25: Q26: Q30: International trade based on external scale economies Q31: Two countries engaged in trade in products Q33: Two countries engaged in trade in products Q37: An industry is characterized by scale economies Q38: International trade based solely on internal scale Q40: A monopoly firm engaged in international trade Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
