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.

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Definitions:

Specified Conditions

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