Under monopolistic competition,firms produce ________ products and have long-run profits that are ________ (net of fixed costs).

Question

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In monopolistic competition, firms produce differentiated products, which allows them to have some control over their prices. However, in the long run, the entry of new firms erodes profits, leading them to be close to zero after accounting for fixed costs.

Under Monopolistic Competition,firms Produce ________ Products and Have Long-Run Profits