In the long run, what level of economic profits can a monopolistic competitor expect to receive?

a. Positive,

b. Zero,

c. Negative,

d. Either negative or positive, depending on the demand for its product and its costs.

A. Positive

Reason: Monopolists tend to earn positive profits in the long run. This is because, monopolist being a single seller in the market, has the entire market demand to cater. The monopolist will tend to continue the production only if he receives super normal profits from selling the product in the market. If in any case the monopolist is incurring losses in the short run, then he will tend to exit the market rather than continuing with it in the long run. Hence in the long run the monopolist will earn positive economic profits. Even in worst case, the monopolist will atleast tend to earn normal profits.