What causes new firms to enter into a monopolistically competitive market structure?
What will be an ideal response?
Positive economic profits earned by the existing firms in the short run attract new firms to enter a monopolistically competitive market.
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According to Baumol and Blinder, does the U.S. economy have a self-correcting mechanism?
a. No, there is no such thing in reality. b. Yes, and it works very rapidly. c. Yes, and it works very slowly. d. No, unless the aggregate supply curve is perfectly flat.
Explain three factors that would cause the dollar to appreciate
Which of the following is purchased in a factor market?
A. A motorized scooter used for commuting by a student. B. National defense. C. A bag of jellybeans. D. The labor of a state university professor.
The consumer's objective is to minimize the utility generated by a fixed budget.
Answer the following statement true (T) or false (F)