If a monopolistically competitive firm is earning profits in the short run:
A. barriers to entry will allow the firm to enjoy them in the long run as well.
B. it is acting like a perfectly competitive firm.
C. other firms have an incentive to enter the market.
D. it should leave the industry before it gets competed away.
C. other firms have an incentive to enter the market.
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If a person has an absolute advantage in some activity, she must have a comparative advantage in that activity as well
Indicate whether the statement is true or false
Pure monopoly markets are very common in the real world.
Answer the following statement true (T) or false (F)
Gross Domestic Product is equal to the market value of all the goods and services ____________ in a given period of time.
Fill in the blank(s) with the appropriate word(s).
When the curve that envelops the series of possible short-run average total cost curves is horizontal, this means that there are:
A. economies of scale. B. diseconomies of scale. C. constant returns to scale. D. diminishing returns.