Consider this statement?

Consider this statement: “Because price equals long run average cost and profits are zero, a monopolistically competitive firms are efficient”. Do you agree or disagree? Explain.

Answer:
Agree. Zero ECONOMICS proft merely means that there is nothing you will rather be doing in the long run. It doesnt mean that your actual profits are zero, on the contrary, it means you are stable. It points to the fact that that there is nothing more profitable based on your labor, land and capital capacity. MOnopolistically competitive firms get to control and survive in the long run. The automobile industry is a great example.

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