In the long run, economic profit for a monopolistically competitive firm
A) is zero, due to the lack of barriers to entry
B) is zero, due to product differentiation
C) may be positive, due to strong barriers to entry
D) may be positive, due to product differentiation
E) may be positive, due to advertising and product promotion
Correct Answer:
Verified
Q95: In the long run in monopolistic competition,
Q96: As a result of the economic profit
Q97: Monopolistically competitive firms
A)are guaranteed to earn short-run
Q98: Excess capacity is defined as the difference
Q99: Which of the following is true of
Q101: Which of the following characteristics does perfect
Q102: Although both perfectly competitive and monopolistically competitive
Q103: Excess capacity typically occurs
A)in the short run
Q104: The automobile, breakfast cereal, and tobacco industries
Q105: Monopolistically competitive firms do not achieve allocative
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