What Will Happen in the Long Run If Firms in Monopolistic

question 40

Multiple Choice

What will happen in the long run if firms in monopolistic competition incur economic loss?

• A)Firms will continue producing and endure the losses.
• B)Firms will leave the industry until the remaining firms make positive economic profit.
• C)Firms will ask the government for financial aid.
• D)Firms will leave the industry until the remaining firms make zero economic profit.
• E)The level of investment in this industry will increase to boost the economy.

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Definitions:

Department Managers

Leaders in charge of managing specific sections or departments within an organization, tasked with strategic planning and team management.

Competition

The rivalry among businesses to attract customers and achieve a market advantage.

Hospital System

An organized network of hospitals, clinics, and health care facilities that provides a range of medical services to patients.

Line Activities

Direct activities that contribute to the production or delivery of a company's products or services, typically involving roles and tasks core to the business operations.