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A firm in monopolistic competition earns only what in the long run?
AMonopoly profit
BNormal profit
CAbnormal loss
DSubsidised profit
Answer & Solution
Correct answer: B. Normal profit
Free entry competes away super-normal profit, so firms only break even in the long run.
Related questions
Monopolistic competition produces what kind of products?Who published The Economics of Imperfect Competition in 1933?Oligopolists can earn abnormal profits in the long run mainly because of:Interdependent oligopolists are generally reluctant to:In a monopoly, the firm and the industry are:Economic profit in perfect competition attracts:Normal profit is counted as part of a firm's:A monopolist whose revenue exceeds its costs earns: