Question

the _____ of barriers to entry ____monpolostocally competitive firms from forming positive economic profit in the long run.

presence, prevent
lack of, prevent
presence, enables
lack of, enables

Answer 1

Answer is B. Lack of, prevent.

The lack of barriers to entry prevent monopolistically competitive firms from forming positive economic profit in long run.

In monopolistic competition there are many firms in the industry and there is no barrier to entry or exit. In long run firms does not make economic profits because economic profits attracts the new firms in the industry and in long run economic profits reduces to only normal profits. So in long run firms only earns normal profits.

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