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 an Accor franchise (the owner of the Motel 6 brand) and it is in a monopolistically competitive market, you would expect in the long run to earn zero economic profits because

Question

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All of the choices (A, B, and C) are true and lead to an expectation of zero economic profits in the long run in a monopolistically competitive market. Low barriers to entry mean that new competitors will enter the market and drive down prices and profits. Competition against other motels and hotels puts further pressure on prices and profits. And franchise fees add to the seller's costs, making it more difficult to earn profits.

Recall the Application About the Costs Involved in Opening a Motel