The Model of Monopolistic Competition Characterizes the Market for Plumbing

Multiple Choice

The model of monopolistic competition characterizes the market for plumbing services.This market is initially in long-run equilibrium,but then there is an increase in the market demand for plumbing services.We expect that in the long run,the economic profits of typical firms will be:

A) typical of those earned by monopoly firms.
B) negative.
C) zero.
D) positive but less than the level typically earned by monopoly firms.