In monopolistic competition a firm
A. earns positive monopoly profits because each sells differentiated product
B. earns positive oligopoly profits because each firm sells a differentiated product.
C. Earns zero economic profits because it is in perfectly or pure competition.
D. Earns Zero economic profits because of free entry.
Answer:D
In monopolistic competition a firm
A. earns positive monopoly profits because each sells differentiated product B. earns positive oligopoly profits because each firm sells a differentiated product. C. Earns zero economic profits because it is in perfectly or pure competition. D. Earns Zero economic profits because of free entry.