Monopolistically competitive firms can earning positive economic profits in the short run, but in the long run:
a. the level of profits will be unchanged.
b. they will make zero economic profits.
c. firms will be unable to enter the industry because of the existence of barriers to entry.
d. a limited number of firms will enter the industry, and profits will be reduced but will remain positive.
Ans: b. they will make zero economic profits.
Economics
You might also like to view...
The decision to make the U.S. income tax system progressive was
A) a positive decision. B) a normative decision. C) a decision that was needed to minimize the excess burden of taxation. D) a progressive decision.
Economics
Briefly describe the different conditions which affect the value of a real option
Economics