A Monopolistically Competitive Firm

Multiple Choice

A monopolistically competitive firm

A) cannot make a positive economic profit in the long run because of entry.
B) can make a positive economic profit in the long run because it sells a differentiated good.
C) can make a positive economic profit in the long run because there are only a few firms in the industry.
D) cannot make a positive economic profit in the long run because it sells a homogeneous good.