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18 April, 21:33

Which of the following statements is true about profits in a monopolistically competitive market? A. Most firms will earn substantial profits from year to year.

B. Many firms will earn profit in the short term, but they must constantly innovate and compete to earn profits in the long term.

C. Profits are rare in monopolistically competitive markets.

DMonopolistically competitive firms are as profitable as monopoly firms.

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  1. 18 April, 21:35
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    The true statement about profits in a monopolistically competitive market is:

    B. Many firms will earn profit in the short term, but they must constantly innovate and compete to earn profits in the long term.

    Examples of monopolistic competition:

    1) hotel and restaurant businesses

    2) consumer services like hair dressers, spa, etc

    3) pubs and bars
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