-If Firms in Monopolistic Competition Are Making Economic Profits, Eventually

question 27

Multiple Choice

-If firms in monopolistic competition are making economic profits, eventually

• A) they shut down.
• B) new firms enter the industry.
• C) they exit the industry.
• D) the firms in the market increase their production so that the economic profit disappears.
• E) the market turns into a monopoly.

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Definitions:

Muscle Cells

Specialized cells that contract and relax to produce movement in the body.

Autonomic Nervous System

Part of the peripheral nervous system that controls bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.

Involuntary Muscles

Muscles that operate without conscious control, responsible for movements in the heart, digestive system, and other bodily functions.

Myelin Sheath

A layer of fatty tissue encasing the fibers of many neurons, which enhances the speed and efficiency of electrical signals traveling along the nerve cells.