Both perfectly competitive and monopolistically competitive industries have many firms,in fact so many that,in the long run

Question

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In both perfectly competitive and monopolistically competitive industries, there are many firms competing. As a result, firms are unable to charge higher prices for their goods and services as consumers have many choices available. Therefore, in the long run, economic profit is "competed away" as firms are forced to lower their prices to remain competitive. This means that firms will only make enough profit to cover their costs of production, and there will be no excess economic profit. Hence, the correct answer is D.

Both Perfectly Competitive and Monopolistically Competitive Industries Have Many Firms,in