Question

Which of the following is true at the​ long-run equilibrium in a monopolistically competitive​ market? A. Each​ firm's output is at the point that minimizes its​ long-run average cost. B. Each firm earns zero economic profit. C. Price is equal to marginal cost. D. All of the above.

Answer 1

B. Each firm earns zero economic profit

Step-by-step explanation:

correct answer is Each firm earns zero economic profit because as in a monopolistic competitive market, free entry and exiting the market, if there is a profit, more companies will come and it will reduce the price to zero. so that the market has zero economic benefit.