This means in the long run, a monopolistically competitive firm will make zero economic profit.
The most competitive firms providing the best service at the lowest price are the ones which should prosper.
For example, Bulow et al. consider the interactions of many imperfectly competitive firms.
In a perfectly competitive firm the price is given.
The lower half represents the normal profits that would go to a competitive firm (ignoring output losses).
Monopolistically competitive firms are able to gain a greater degree of market share and as a result, increase prices.
Yet few of the nation's most competitive firms, companies and government agencies really know what they know.
At some competitive firms, you will be removed from the running if your name is not in the guest book.
Other financial services groups said the measure was needed to make American financial firms more globally competitive.
"But I do know we have the building blocks to build a competitive firm."