The Most Important Factor in Determining the Long-Run Profit Potential

question 68

Multiple Choice

The most important factor in determining the long-run profit potential in monopolistic competition is:

• A) free entry and exit.
• B) the elasticity of the market demand curve.
• C) the elasticity of the firm's demand curve.
• D) the reaction of rival firms to a change in price.

---

Definitions:

First Impression

The initial perception or judgment formed about someone or something based on the first encounter.

Multiculturalism

The presence of, or support for the presence of, several distinct cultural or ethnic groups within a society.

Cultural Change

A significant shift in the values, norms, customs, and practices of a group or society, often over time.

Mainstream Culture

The dominant set of norms, values, and practices of the majority population within a society.