Multiple Choice
One reason why firms in monopolistically competitive markets earn zero profit in the long run is because
A) product differentiation disappears
B) barriers to entry become prohibitive
C) the price elasticity of demand for each firm falls to zero
D) so many firms enter the market that each firm's demand curve eventually becomes tangent to the firm's ATC curve
E) each firm's ATC curve shifts upward to eventually become tangent to its demand curve
Correct Answer:
Verified
Correct Answer:
Verified
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