In short run, a firm in monopolistic competition:

CA Foundation · Business Economics · MTP · April 2025
In short run, a firm in monopolistic competition:
(A) A. always earns profits
(B) B. incurs losses
(C) C. earns normal profit only
(D) D. may earn normal profit, super normal profit or incur losses

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. may earn normal profit, super normal profit or incur losses

Topics: Price Determination in Different Markets

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