Respuesta :
In the long run, a representative firm in a monopolistically competitive industry will end up earning a normal profit, but not an economic profit.
What is normal profit?
Normal profit is a measure of profit that accounts for both explicit and implicit costs. It could be considered in connection with financial gain. When all of a company's costs, both explicit and implicit, are equal to all of its revenue, there is a normal profit.
What does economic profit mean?
An economic profit or loss is the sum of the money earned from selling an output minus the cost of all the inputs plus any opportunity costs. Earned income is reduced by opportunity costs and explicit costs to arrive at an economic profit.
What is a monopolistically competitive industry?
When a large number of businesses provide rival goods or services that are comparable but imperfect alternatives, monopolistic competition exists. A monopolistic competitive industry has minimal entry requirements, and decisions made by any one firm do not immediately affect those of its rivals.
Learn more about normal and economic profit: https://brainly.com/question/15573174
#SPJ4
