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Firms usually engage in a lot of activates for profit. Zero economic profit may continue to earn profit by reducing costs. A monopolistic competitor, like some organizations often earn profits in the short run. the entry of some firms into the same market can bring about a shift in the demand curve faced by a monopolistically competitive firm. ; In a perfectly competitive market, so many firms produce the same products that, in the long run, none can attain enough power to influence the industry.
Zero economic profit in the long run in the long run, a monopolistically competitive fi rm earns zero economic profi t, which is exactly what would occur if the industry were perfectly competitive. Assuming that the cost curves for each fi rm are the same whether the industry is perfectly or monopolistically competitive, answer the following. View the full answer. Is zero economic profit inevitable in the long run for monopolistically competitive firms? In the long run, monopolistically competitive firms 0 a. Will continue to earn profit due to barriers to new firms entering the market. Will not continue to earn profit because monopolistically competitive. Is zero economic profit inevitable in the long run for monopolistically competitive firms? In the long run, monopolistically competitive firms.
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