Monopolistically competitive firms can earn profits in the long run by:
A. monopolistically competitive firms only earn zero profits in the long run.
B. continually innovating to differentiate their product.
C. price discriminating.
D. further minimizing their costs.
Answer: B
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In September 2008, Toyota Motor's share of the U.S. auto sales market was 15 percent, Ford's market share was 12.1 percent, GM's was 29.1 percent, Honda's was 10 percent, Nissan's share was 6.2 percent, and Chrysler's market share was 11.1 percent
What type of market structure would the market for autos represent? A) monopolistic competition B) monopoly C) oligopoly D) markets and competitive environment
Not enforcing property rights in an economy will
A) lower the level of investment. B) raise the level of investment. C) not change the level of investment. D) cause the market system to work efficiently.
If resale price maintenance leads to a shift in the market demand that equals the shift in the market supply, the quantity of the good sold will ________ and the manufacturer's profit will ________.
A) increase; not change B) not change; not change C) decrease; decrease D) not change; decrease
Bread and butter are complements. A decrease in the price of bread results in a(n)
a. decrease in the supply of break b. increase in the demand for butter c. increase in the demand for bread d. increase in resource prices e. violation of the law of demand