If monopolistically competitive firms are making zero economic profit,then these firms would

Question

Quizplus · Accepted Answer

If monopolistically competitive firms are making zero economic profit, they still cover their costs and remain in the industry. This is because there are no economic losses to force them out of the industry, but also no economic profits to attract new firms to join. Therefore, monopolistically competitive firms would simply continue to operate in the industry without significant changes in price, demand or collusive behavior.

If Monopolistically Competitive Firms Are Making Zero Economic Profit,then These