Which of the following is not a key feature of monopolistic competition?
A)Excess capacity
B)A markup of price over marginal cost
C)Positive economic profits for firms in the long run
D)Differentiated products among firms in the market

Question

Quizplus · Accepted Answer

Positive economic profits for firms in the long run are not a key feature of monopolistic competition. In the long run, firms in monopolistic competition will experience zero economic profits due to entry and competition. The other options A, B, and D are key features of monopolistic competition.

Which of the Following Is Not a Key Feature of Monopolistic