In the long run, both monopolistic competition and perfect competition result in:
A) a wide variety of brand-name choices for consumers.
B) an efficient allocation of resources.
C) zero economic profit for firms.
D) excess capacity.

Question

Quizplus · Accepted Answer

In the long run, both monopolistic competition and perfect competition result in zero economic profit for firms due to the entry and exit of firms in the market.

In the Long Run, Both Monopolistic Competition and Perfect Competition