If Monopolistically Competitive Firms Are Making Zero Economic Profit,then These

question 63

Multiple Choice

If monopolistically competitive firms are making zero economic profit,then these firms would

• A) leave the industry.
• B) charge higher prices.
• C) make demand more inelastic.
• D) remain in the industry.
• E) begin to collude illegally.

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Definitions:

Debt to Assets Ratio

A financial ratio that measures the percentage of a company's assets that are financed by debt, used to gauge a company's financial leverage.

Total Assets

The aggregate of all resources owned by a company, valued in monetary terms.

Creditors

Individuals or institutions to which money is owed by a person or entity.

Profit Margin

Measures the percentage of each dollar of sales that results in net income; computed by dividing net income by net sales.