If the firms in a monopolistically competitive market are earning economic profits in the short run, would you expect them to continue doing so in the long run? They will be unable to earn economic profits in the long run O They will always be able to earn economic profits in the long run. O They can continue to do so in the long run if new entries cannot completely erase the differentiation in their product. O Monopolisitc companies cannot earn economic profits in the long run unless government regulations help them achieve their goal of economic profits.

If the firms in a monopolistically competitive market are earning economic profits in the short run, would you expect them to continue doing so in the long run? They will be unable to earn economic profits in the long run O They will always be able to earn economic profits in the long run. O They can continue to do so in the long run if new entries cannot completely erase the differentiation in their product. O Monopolisitc companies cannot earn economic profits in the long run unless government regulations help them achieve their goal of economic profits.

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 2SCQ: Continuing with the scenario in question 1, in the long run, the positive economic profits that the...

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If the firms in a monopolistically competitive market are earning economic profits or losses in the short run, would you expect them to continue doing so in the long run? Why?
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