The primary reason why monopolistically competitive firms cannot earn an economic profit in the long run is because
A) there are barriers to entry.
B) there is freedom of entry.
C) the antitrust laws prevent profit from increasing.
D) recessions occur.
E) they collude to earn a normal profit.
B
You might also like to view...
Deficits may be desirable in the short run if they:
A. increase savings necessary for future consumption and demand. B. increase savings necessary for future investment and growth. C. help to stabilize the economy when the economy is above potential output. D. help to stabilize the economy when the economy falls below potential output.
Refer to the information provided in Figure 7.4 below to answer the question(s) that follow. 
Figure 7.4Refer to Figure 7.4. The marginal product of the third worker is
A. 10. B. 28.67. C. 32. D. 42.
Who said, "We might as reasonably dispute whether it is the upper or the under blade of a pair of scissors that cuts a piece of paper" as whether price is set by demand or supply?
A. Thomas Carlyle B. Alfred Marshall C. Adam Smith D. Edward Scissorhands
Scarcity can best be defined as a situation in which
A) there are no buyers willing to purchase what sellers have produced. B) there are not enough goods to satisfy all of the buyers' demand. C) there is more than enough money to satisfy consumers' wants. D) the resources we use to produce goods and services are limited.