QUESTION 5 Which of the following statements is correct A In

QUESTION 5 Which of the following statements is correct? A. In the long run, it is likely that monopolistically competitive firms experience substantial economic losses 0 B. In the long run, it is likely that monopolistically competitive firms experience negative economic profits. C. In the long run, monopolistically competitive firms tend to experience zero economic profits D. In the long run, monopolistically competitive firms always experience high economic profits

Solution

Q5. Answer is C. In the long run, monopolistically competitive firms tend to experience zero Economic profits. Q6. Answer is D. there are many firms in the industry.