How might a monopolistically competitive firm continually earn economic profit greater than​ zero? To earn economic profit greater than​ zero, a monopolistically competitive firm must   A. be the first firm to enter a market to obtain​ first-mover advantages.   B. eliminate excess capacity by producing at minimum average cost.   C. rely on chance events.   D. differentiate its product and produce at lower average cost than competitors.   E. block entry of new firms with​ government-enforced patents

Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
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Chapter10: Monopolistic Competition And Oligopoly
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How might a monopolistically competitive firm continually earn economic profit greater than​ zero?
To earn economic profit greater than​ zero, a monopolistically competitive firm must
 
A.
be the first firm to enter a market to obtain​ first-mover advantages.
 
B.
eliminate excess capacity by producing at minimum average cost.
 
C.
rely on chance events.
 
D.
differentiate its product and produce at lower average cost than competitors.
 
E.
block entry of new firms with​ government-enforced
patents.
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