Which of the following correctly describes economic profits and allocative efficiency for a firm in monopolistic competition in long-run equilibrium?
Choose 1 answer:
A) It earns zero economic profits and is allocatively efficient.
(B) It earns zero economic profits and is allocatively inefficient.
(c) It earns zero economic profits and is allocatively neutral.
(D) It earns negative economic profits and is allocatively efficient.
(E) It earns positive economic profits and is allocatively inefficient.
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