Answered

Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Discover the answers you need from a community of experts ready to help you with their knowledge and experience in various fields. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

Is zero economic profit inevitable in the long run for monopolistically competitive firms? in the long run, monopolistically competitive firms.

Sagot :

Martebi

Firms usually engage in a lot of activates for profit.  Zero economic profit  may continue to earn profit by reducing costs.

  • A monopolistic competitor, like some organizations often earn profits in the short run. The entry of some firms into the same market can bring about a shift in the demand curve faced by a monopolistically competitive firm.

When economic profit is zero, an organization is known to be earning the same as when its resources were used in the next best alternative.

See full question below

Is zero economic profit inevitable in the long run for monopolistically competitive firms? In the long run, monopolistically competitive firms

A. will not continue to earn profit because the cost of production will rise as new firms enter the market.

B. may continue to earn profit by convincing consumers their products are different.

C. will continue to earn profit due to barriers to new firms entering the market.

D. may continue to earn profit by instead beginning to produce a product identical to competitors.

E. will not continue to earn profit because monopolistically competitive firms produce identical products.

Learn more from

https://brainly.com/question/14406708

Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.