A monopolistic competitor is like a competitive firm in the long run, because

Question

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In the long run, a monopolistic competitor will earn zero economic profits due to the entry of new firms attracted by the positive profits in the short run. This is similar to a competitive firm in the long run, which also earns zero economic profits due to the lack of market power. Therefore, both firms will have a similar outcome in the long run despite their different market structures.

A Monopolistic Competitor Is Like a Competitive Firm in the Long