A partnership business is formed when two or more people agree to start a business together. They become partners in the business. The partners share in the responsibilities of running the business as agreed in the partnership agreement. Profit and losses are distributed to the partners using an agreed formula.
Forming a partnership is less complex than a corporation. Typically partnerships are started by friends or acquaintances with shared business visions.
A monopolistically competitive market is a market in which there are a lot of organizations that sell products that are similar and it tends to be easy to enter and leave the industry. Because it is easy for a company to enter the market and there is a lot of competition, in the long run the economic profit is zero. According to this, the answer is that in the long run, profits in a monopolistically competitive market are zero because firms are free to enter and exit the market.
The other options are not right because a monopolistically competitive market has zero profits because of its low entry barriers and amount of competitors not because of government regulations or an illegal agreement between organizations to control competition. Also, in a monopolistically competitive market the products are similar.
