Post a New Question

microeconomics

posted by .

32. Firm X is a typical firm in a market characterized by the model of monopolistic competition. Suppose that the market is initially in long-run equilibrium, and then there is an increase in demand for services. We can assume that in the long run, the economic profits of typical firms in the industry will be:
A) typical of those earned by monopoly firms.
B) positive but less than the level typically earned by monopoly firms.
C) zero.
D) negative.

Answer This Question

First Name
School Subject
Your Answer

Related Questions

More Related Questions

Post a New Question