In monopolistic competition,the presence of free entry suggests that

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In monopolistic competition, the presence of free entry suggests that new firms can enter the market easily, leading to an increase in competition. This competition will eventually drive down the economic profits earned by the existing firms, making it harder for firms to earn economic profits in the long run. In the long run, all firms will earn zero economic profit because new firms will continue to enter until economic profits are driven to zero.

In Monopolistic Competition,the Presence of Free Entry Suggests That