In the Long Run, a Firm in Monopolistic Competition Will

question 56

Multiple Choice

In the long run, a firm in monopolistic competition will

• A) make a negative economic profit, that is, an economic loss.
• B) make zero economic profit, that is, a normal profit.
• C) make a positive economic profit.
• D) None of the above answers is necessarily correct because the amount of the profit or loss depends on the slope of the demand curve.