In the long run the monopolistic competitive firm has:

CA Foundation · Business Economics · MTP · September 2026
In the long run the monopolistic competitive firm has:
(A) A. Excess capacity
(B) B. Excess Profits
(C) C. Zero fixed cost
(D) D. All the above

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. Excess capacity

Topics: Price Determination in Different Markets

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