If a Monopolistically Competitive Firm Engages in a Successful Advertising

Multiple Choice

If a monopolistically competitive firm engages in a successful advertising campaign resulting in above positive economic profits then in the long run that firm will

A) continue to earn positive economic profits because successful advertising is one of the barriers to entry
B) earn zero economic profits because the government will begin to regulate the industry
C) earn negative economic profits because it won't be able to advertise indefinitely
D) earn zero economic profits because other firms will also begin to advertise
E) continue to earn positive economic profits because most monopolistically competitive firms can earn economic profits in the long run