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Four Market Model Summary: Monopolistic Competition
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Four Market Model Summary: Monopolistic Competition
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13. Monopolistic Competition / Four Market Model Summary: Monopolistic Competition / Problem 6
Problem 6
What happens to economic profit in the long run in monopolistic competition?
A
It remains constant due to fixed costs.
B
It becomes zero due to new firms entering the market.
C
It increases due to product differentiation.
D
It decreases due to high barriers to entry.
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