While the monopolistic competitor earns zero economic profit in the long run, her level of accounting profit will be positive.

Name: While the monopolistic competitor earns zero economic profit in the long run, her level of accounting profit will be positive.
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Question

Quizplus · Accepted Answer

In the long run, monopolistic competitors earn zero economic profit due to free entry and exit, but they can still have positive accounting profit as it includes both explicit and implicit costs.

While the Monopolistic Competitor Earns Zero Economic Profit in the Long