A Monopolistic Competitor Is Like a Monopolist in the Long

question 267

Multiple Choice

A monopolistic competitor is like a monopolist in the long run in that when economic profits are

• A) equal to zero, positive economic profits are made.
• B) equal to zero, economic profits are made.
• C) greater than zero, changes in output are due to changes to plants by existing firms and there is no entry.
• D) greater than zero, price exceeds marginal cost.