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In long-run all firms in monopolistic competition

This question belongs to Commerce Economics
Economics
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In long-run, all firms in monopolistic competition

Answer & Solution
Correct Answer: Option B
In long-run, all firms in monopolistic competition earn normal profits. In the long‐run, the competition brought about by the entry of new firms will cause each firm in a monopolistically competitive market to earn normal profits, just like a perfectly competitive firm.
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