Monopolistic competition is inherently inefficient, since, in the long run, each firm enjoys positive economic profits at the expense of the consumer.

Name: Monopolistic competition is inherently inefficient, since, in the long run, each firm enjoys positive economic profits at the expense of the consumer.
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Question

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In monopolistic competition, firms can only make normal profits in the long run because of the free entry and exit of firms in the market, which drives economic profits to zero.

Monopolistic Competition Is Inherently Inefficient, Since, in the Long Run