If Monopolistically Competitive Firms Are Making Positive Economic Profits,then New

question 165

Multiple Choice

If monopolistically competitive firms are making positive economic profits,then new firms would

• A) reduce their costs.
• B) charge higher prices.
• C) make demand more inelastic.
• D) leave the industry.
• E) begin to enter the industry.

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Definitions:

Orders

Directives issued by an authority, such as a court or government agency, that require parties to act or refrain from acting in a certain way.

Administrative Procedure Act

A law in the United States governing the process by which federal agencies develop and issue regulations, including a requirement for public participation.

Informal Rulemaking

A regulatory process involving the publication of a proposed rule and the solicitation of public comments before the rule is finalized.

Enabling Statute

Legislation that gives a government entity or agency the authority to implement and enforce specific laws.