Solved

Why Do Most Firms in Monopolistic Competition Typically Make Zero

Question 152

Multiple Choice

Why do most firms in monopolistic competition typically make zero profit in the long run?


A) Because firms produce differentiated products
B) Because the lack of entry barriers would compete away profits
C) Because firms do not produce at their minimum efficient scale
D) Because the total market is not large enough to accommodate so many firms

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions