In monopolistic competition, when firms make an economic profit
A) the existing firms continue to make an economic profit in the long run because of product differentiation.
B) new firms enter the industry so that the price falls and the economic profit eventually falls to zero.
C) new firms enter the industry so that output decreases and the economic profit increases.
D) new firms enter the industry so that output increases and the economic profit increases.
B
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Typically, increasing the difference between the discount and federal funds rates causes
A) an increase in market interest rates. B) high corporate profits. C) no change in interest rates. D) a boom in the economy.
Child labor is a common family survival strategy, especially for farmers in rural areas where it is hard to enforce rules or to reach the poor with any supporting infrastructure or social services
Indicate whether the statement is true or false
Opportunity cost is the combined value of all other alternatives that go unchosen
a. True b. False Indicate whether the statement is true or false
Trade contributes to prosperity because:
A. every country lacks some vital resources that it can get economically only by trade. B. each country's climate makes it a relatively efficient producer of some goods, and an inefficient producer of other goods. C. each country's labor force makes it a relatively efficient producer of some goods, and an inefficient producer of other goods. D. all of the above.