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In monopolistically competitive markets, free entry and exitsuggest that a. the

ID: 1253918 • Letter: I

Question

In monopolistically competitive markets, free entry and exitsuggest that a. the market structure will eventually be characterized byperfect competition in the long run b.all firms earn zero economic profits in the long run c.some firms will be able to earn economic profits inthe long run. d.some firms will be forced to incur economic losses in thelong run. In monopolistically competitive markets, free entry and exitsuggest that a. the market structure will eventually be characterized byperfect competition in the long run b.all firms earn zero economic profits in the long run c.some firms will be able to earn economic profits inthe long run. d.some firms will be forced to incur economic losses in thelong run.

Explanation / Answer

I believe its a. the market structure will eventually be characterized by perfect competition in the long run

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