Due to the ease of entry of new firms into monopolistically competitive markets in the long run, existing firms in these markets:

Question

Due to the ease of entry of new firms into monopolistically competitive markets in the long run, existing firms in these markets:​

Quizplus · Accepted Answer

In the long run, new firms will enter the monopolistically competitive market, increasing competition and driving down demand for any individual firm's product. This leads to firms earning zero economic profit in the long run, as they are only able to cover their production costs.

Due to the Ease of Entry of New Firms into Monopolistically