In monopolistic competition:

A) firms earn zero economic profits in the long run.
B) each firm produces a product identical to that of every other firm in the industry.
C) firms are aware of their strategic interdependence.
D) firms earn large economic profits in the long run.

Zero Economic Profits

A situation where a firm covers all its costs, including the opportunity costs, resulting in no additional profit above the normal rate of return.

Strategic Interdependence

A situation in which the actions of one entity affect the outcomes of another in a business environment.

Identical Product

A product that is exactly the same in every feature, quality, and aspect as another product.