Question

multiple choice question which of the following factors is most likely to help a monopolistically competitive firm postpone earning only a normal profit? price cutting new competitors product differentiation minimal advertising

Explanation:

In monopolistic competition, product differentiation creates a unique selling - point for the firm. It allows the firm to have some market power and charge a price above the average cost in the short - run, postponing the situation of earning only a normal profit. Price cutting may lead to price wars and reduced profits. New competitors increase competition and reduce profits. Minimal advertising may limit the firm's ability to attract customers and maintain market share.

Answer:

Product differentiation