Question

The typical firm in a monopolistically competitive market does not earn long-run economic profit. Does that fact make it economically efficient?

Answer 1

@Pentecostal_gal

Answer 2

okay give me a sec

Answer 3

Yes, it does. In a competitive market, firms will enter and leave the market freely. If at some point, there is a profit in the market, new firms will enter, thus increasing supply (and lowering price with it). Lowered price will end up decreasing profit till there is a loss in the market, and firms will exit. In the long run all these fluctuations average out, and firms make zero profit in the long run.
://answers.yahoo.com/question/index?qid=20121115104736AAC3JPo

Answer 4

hai hai hai

Answer 5

does that help?

Answer 6

absolutely ! thanks!