Why do most firms in monopolistic competition typically make zero profit in the long run?
A) because firms produce differentiated products
B) because the lack of entry barriers would compete away profits
C) because firms do not produce at their minimum efficient scale
D) because the total market is not large enough to accommodate so many firms
Answer: B
Economics
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Heuristic models are:
A. models expressed informally in words. B. highly mathematical models that are impossible to solve. C. based on scattergrams of two variables. D. models expressed informally by graphs.
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