If There Are Exactly 20 Firms in the Monopolistically Competitive

question 107

Multiple Choice

If there are exactly 20 firms in the monopolistically competitive industry that are identical to the firm shown,in the long run,we would expect that

• A) total industry economic profit would be exactly equal to 20 times the profit of each individual firm.
• B) total industry economic profit would be greater than 20 times the profit of each individual firm.
• C) industry costs would rise.
• D) new firms would desire to enter the industry,but would not be able to because of high entry barriers.
• E) total industry economic profit would be zero.

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Definitions:

Prestige

The respect and admiration that an individual or organization gains based on achievements, quality, or position.

California Q-Set

An assessment tool used in psychology to measure personality traits, attitudes, and behaviors through the ranking of descriptive items.

Quantitative Factor Analysis

A statistical method used to describe variability among observed, correlated variables in terms of fewer unobserved variables, called factors.

Allport

Gordon Allport, a pioneering psychologist known for his theory on personality traits and the concept of the "proprium" as the core of an individual's sense of self.