In the long run in monopolistic competition,firms
A) can make an economic profit.
B) incur an economic loss.
C) make zero economic profit.
D) shut down if they are making zero economic profit.
E) make either an economic profit or zero economic profit.

Question

Quizplus · Accepted Answer

In the long run in monopolistic competition, firms make zero economic profit due to the entry and exit of firms in the market, which drives the price down to the point where it equals average total cost.

In the Long Run in Monopolistic Competition,firms