Recall the Application about the costs involved in opening a motel to answer the following question(s).
-Recall the Application. If you spend the money to buy a motel franchise and it is in a monopolistically competitive market, you would expect in the long run to

Question

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In a monopolistically competitive market, there are many firms offering similar products, but each firm has some degree of control over the price due to product differentiation. Therefore, in the long run, a firm can expect to earn only zero economic profits because any profits realized will be competed away by other firms entering the market or current firms expanding their operations.

Recall the Application About the Costs Involved in Opening a Motel