In Monopolistic Competition, If Economic Profits Are Being Earned, Which

question 91

Multiple Choice

In monopolistic competition, if economic profits are being earned, which of the following will not happen?

• A) New firms will enter.
• B) Entry will cause the market supply curve to shift to the right.
• C) Entry will cause the firm's demand curve to shift to the left.
• D) Entry will cause the market price to rise.

---

Definitions:

Depressant

A class of drugs that reduce the functioning of the nervous system and lead to decreased arousal or stimulation.

Stimulant

A substance that raises levels of physiological or nervous activity in the body, often leading to increased alertness or energy.

Neurotransmitters

Neurotransmitters are chemical messengers that transmit signals across a synapse from one neuron to another, influencing mental processes and behavior.

GABA

Gamma-aminobutyric acid, a neurotransmitter in the brain that plays a key role in regulating nerve excitability and is involved in producing a calming effect.