Within a Monopolistically Competitive Industry

question 13

Multiple Choice

Within a monopolistically competitive industry,

• A)firms can freely enter and exit,and economic profit is zero in the long run.
• B)firms can freely enter and exit,and economic profit is greater than zero in the long run.
• C)there are some barriers to entry and exit,and economic profit is zero in the long run.
• D)there are some barriers to entry and exit,and economic profit is greater than zero in the long run.
• E)firms can freely enter and exit,and economic profit is zero in the short run.

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Definitions:

Displaces

Refers to the process by which one substance is replaced by another substance in a chemical reaction, often seen in displacement reactions.

Shard

A piece of broken ceramic, glass, metal, or other hard materials, typically having sharp edges.

Density

The measurement of mass per unit volume of a substance, commonly expressed in grams per cubic centimeter or kilograms per cubic meter.

Mass

A property of a physical body which determines the body's resistance to being accelerated by a force and the strength of its mutual gravitational attraction with other bodies.