Which of the Following Statements Is TRUE About the Economic

Multiple Choice

Which of the following statements is TRUE about the economic profits earned by a monopolistic competitor firm in the long run?

A) Economic profits can be positive since firms have some degree of monopoly power.
B) Economic profits will be positive since the firm has a downward sloping demand curve.
C) Economic profits will tend towards zero since positive profits will attract new firms into the industry.
D) Economic profits can be negative since there is so much competition in the market.