In the Model of Monopolistic Competition, If Firms Have ________

question 54

Multiple Choice

In the model of monopolistic competition, if firms have ________ average cost curves, then opening trade will cause ________ firms to ________ the industry.

• A) different; more efficient; enter
• B) symmetric; less efficient; enter
• C) different; less efficient; exit
• D) symmetric; less efficient; exit
• E) symmetric; more efficient; enter

---

Definitions:

Bonus Payments

Additional remuneration given to employees as a reward for their performance, often determined at the discretion of the employer.

Selling Price

The amount of money for which an item is sold, determining the revenue generated from its sale.

International Financial Reporting Standards (IFRS)

A set of global accounting standards developed by the International Accounting Standards Board (IASB) that aims to bring transparency, accountability, and efficiency to financial markets around the world.

International Accounting Standards Board

An independent organization that establishes accounting standards known as International Financial Reporting Standards (IFRS) used globally.