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Why Does a Firm in Monopolistic Competition Earn Zero Economic

question 44

Essay

Why does a firm in monopolistic competition earn zero economic profit rather than an economic profit in the long run?


Definitions:

Epiglottis

A leaf-shaped flap in the throat that prevents food and drink from entering the windpipe during swallowing.

Parietal Pleura

The part of the pleura that lines the inner surface of the chest wall and diaphragm, but does not cover the lungs.

Visceral Pleura

The inner layer of the pleura that covers the lungs, closely adhering to the lung surfaces and extending into the fissures between the lobes.

Parietal Pericardium

A tough outer layer of the pericardium which is a fibrous sac that encloses the heart.

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