Narrbegin Exhibit 9.1 A monopolistic competitive firm
-As represented in Exhibit 9.1, the maximum long-run economic profit earned by this monopolistically competitive firm per day is:

Question

Narrbegin Exhibit 9.1 A monopolistic competitive firm  
-As represented in Exhibit 9.1, the maximum long-run economic profit earned by this monopolistically competitive firm per day is:

Quizplus · Accepted Answer

In the long run, a monopolistically competitive firm earns zero economic profit due to the presence of low barriers to entry, allowing for new firms to enter the market and compete away profits. The firm in Exhibit 9.1 is shown to be earning only normal profit (breaking even) as its total revenue (TR) is equal to its total costs (TC) at the profit-maximizing output level. Therefore, the maximum long-run economic profit earned by this firm per day is zero.