In the long run, the representative firm in monopolistic competition tends to have

A) excess capacity.
B) economic profits.
C) no product differentiation.
D) a perfectly elastic demand curve.

Monopolistic Competition

A market framework where multiple companies distribute products that are akin to each other but not copies, thus granting them a degree of power within the market.

Excess Capacity

A situation where a company or economy can produce more goods or services than currently demanded, often leading to inefficiency and lower prices.