In an monopolistic competitive industry, firms can earn positive economic profits Select one: O a. In the short run and in the long run. b. In the short run but not in the long run. c. Both in the short run and long run as he does not lose money. d. In the long run but not in the short run.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 9RQ: If the firms in a monopolistically competitive market are earning economic profits or losses in the...
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In an monopolistic competitive industry, firms can earn positive economic profits
Select one:
a. In the short run and in the long run.
b. In the short run but not in the long run.
c. Both in the short run and long run as he does not lose money.
d. In the long run but not in the short run.
Transcribed Image Text:In an monopolistic competitive industry, firms can earn positive economic profits Select one: a. In the short run and in the long run. b. In the short run but not in the long run. c. Both in the short run and long run as he does not lose money. d. In the long run but not in the short run.
Expert Solution
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Monopolistic competition: It characterizes a number of industries that are familiar with consumers in their day to day life. 
Example: Restaurants, hair salons, etc.

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