In monopolistic competition there are ________ barriers to entry,so therefore in the long run,economic profit ________.
A) no; is substantial
B) no; equals zero
C) many; equals zero
D) many; is substantial
E) many; might be earned depending on the degree of product differentiation

Question

Quizplus · Accepted Answer

In monopolistic competition, there are no significant barriers to entry, which means that new firms can easily enter the market. Due to this, in the long run, economic profits for existing firms will ultimately decrease to zero as new firms enter and compete for customers. Therefore, option B is correct, as in the long run, economic profit will equal zero.

In Monopolistic Competition There Are ________ Barriers to Entry,so Therefore