In the long run,a firm in monopolistic competition
A) makes zero economic profit.
B) produces at a minimum average total cost.
C) has deficient capacity.
D) can make either a normal profit or an economic profit.
E) produces a quantity where its demand curve is upward sloping.

Question

Quizplus · Accepted Answer

In the long run, a firm in monopolistic competition will make zero economic profit due to the entry of new firms into the market, which erodes any initial economic profits to normal profit levels.

In the Long Run,a Firm in Monopolistic Competition