In the Long Run, the Positive Economic Profits of Wings

question 23

Multiple Choice

In the long run, the positive economic profits of Wings and Things, a monopolistic competitor, are:

• A) not driven out because competition is not perfect.
• B) not driven out because the demand curve slopes downward.
• C) eliminated due to the entry of firms into the industry.
• D) eliminated due to the departure of firms from the industry.
• E) not driven out because firms cannot enter the industry.

---

Definitions:

Loanable Funds

The total funds available in the financial markets for borrowing, which come from savings and are used for investment.

Borrowed

Refers to funds or resources obtained temporarily from another party, typically with the obligation of returning or repaying the amount with interest.

Demand

The quantity of goods or services that consumers are willing and able to purchase at various prices during a given time period.

Rent Control

Government policies or laws that limit the rent landlords can charge for housing, intended to make housing affordable.