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If There Are Exactly 20 Firms in the Monopolistically Competitive

Question 107

Multiple Choice

If there are exactly 20 firms in the monopolistically competitive industry that are identical to the firm shown,in the long run,we would expect that


A) total industry economic profit would be exactly equal to 20 times the profit of each individual firm.
B) total industry economic profit would be greater than 20 times the profit of each individual firm.
C) industry costs would rise.
D) new firms would desire to enter the industry,but would not be able to because of high entry barriers.
E) total industry economic profit would be zero.

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