In the long run, the economic profits in a monopolistically competitive industry tend to go towards zero. The main reason for this is: a differentiated products. b diseconomies of scale. c increased regulatory pressure on profitable firms. d free entry.
In the long run, the economic profits in a monopolistically competitive industry tend to go towards zero. The main reason for this is: a differentiated products. b diseconomies of scale. c increased regulatory pressure on profitable firms. d free entry.
Chapter10: Monopolistic Competition And Oligoply
Section: Chapter Questions
Problem 2SQ
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In the long run, the economic profits in a monopolistically competitive industry tend to go towards zero. The main reason for this is:
a
differentiated products.
b
diseconomies of scale.
c
increased regulatory pressure on profitable firms.
d
free entry.
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