piecuy Cipetlive if the firms sell identical 29. Monopolistic competition differ

Question

piecuy Cipetlive if the firms sell identical 29. Monopolistic competition differs from perfect competition because in monopolistically competitive markets each of the sellers offers a somewhat different product. Moreover, a profit-maximizing firm in a monopolistically competitive market differs from a fi in a perfectly competitive market because the firm in the monopolistically competitive markni a. make zero profit in long run. b faces a horizontal demand curve a:0, market clearing price. c. is characterized by setting the price at P ATC d. has no hariers to entry Figure#3:

Explanation / Answer

Answer : (29) a. make zero profit in long run. Because in long run monopolistic competition new firm enter into the market. Therefore supply automatically increase in the market and price fall. Ultimately firm face zero profit in the market

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