Multiple Choice
If monopolistically competitive firms are earning positive economic profits in the short run,then in the long run:
A) firms will leave the industry.
B) the demand curves faced by existing firms will move to the right.
C) economic profits will increase.
D) economic profits will be reduced to zero.
Correct Answer:
Verified
Correct Answer:
Verified
Q129: Monopolistic competitors:<br>A)have some ability to set price.<br>B)must
Q130: If a firm operating in monopolistic competition
Q131: Use the following to answer question:<br>Figure: Monopolistic
Q132: Use the following to answer question:<br>Figure: Monopolistic
Q133: Which statement is TRUE?<br>A)Monopolistic competition and perfect
Q135: Suppose the dry-cleaning market is monopolistically competitive
Q136: Suppose Susan owns a business that operates
Q137: General Snacks is a typical firm in
Q138: Use the following to answer question:<br>Figure: The
Q139: Product differentiation under monopolistic competition means that