In monopolistic competition,there are ________ barriers to entry and so firms in monopolistic competition ________ make an economic profit in the long run.
A) high; can
B) high; cannot
C) no; can
D) no; cannot
E) sometimes; can sometimes

Question

Quizplus · Accepted Answer

In monopolistic competition, there are no barriers to entry, meaning new firms can easily enter the market. This leads to increased competition and price pressure, which reduces the potential for economic profit in the long run. Therefore, firms in monopolistic competition cannot make an economic profit in the long run.

In Monopolistic Competition,there Are ________ Barriers to Entry and So