You Operate a Monopolistically Competitive Firm and You Notice That

question 32

Multiple Choice

You operate a monopolistically competitive firm and you notice that your company is making an economic profit.Which of the following is most likely to happen?

• A) Other firms in your industry will raise their prices.
• B) Other firms will enter your industry and your demand curve will shift left.
• C) Other firms will enter your industry and your demand curve will shift right.
• D) Your firm will be forced to exit the industry.
• E) Government regulators will investigate your firm for "excessive economic profit."

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Definitions:

Retirement Age

The age at which a person is typically expected to cease working and is eligible to receive retirement benefits or pensions.

Profession

A type of occupation that requires specialized training, education, or skill, often associated with a particular field or industry.

Career

The pursuit of successive, often related jobs over time in a particular field or industry, often marked by advancements or changes in roles.

Candy Pieces

Small items of confectionery or sweet food products.