A monopolistically competitive firm
A)charges a price that is equal to marginal cost.
B)experiences a zero profit in the long run.
C)produces at the efficient scale in the long run.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

In the long run, a monopolistically competitive firm experiences zero economic profit due to the entry of new firms, which drives down prices and profits.

A Monopolistically Competitive Firm