If Firms in Monopolistic Competition Are Making Economic Profits, Then

question 40

Multiple Choice

If firms in monopolistic competition are making economic profits, then

• A) new rivals enter the industry and the demand for any seller's good increases.
• B) the market demand becomes more inelastic.
• C) new rivals enter the industry and the demand for any seller's good decreases.
• D) the industry is in long-run equilibrium.
• E) they can expect to earn the profits indefinitely.

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Definitions:

Situational Factors

External influences that affect an individual's behavior or performance, varying according to the context or environment.

Person-Job Matching

The process of aligning the skills, experiences, and attributes of individuals with the requirements and characteristics of a job to ensure optimal performance and job satisfaction.

Competencies

The skills, knowledge, and abilities that are significant for successful performance in a job.

Goal-Directed Behaviors

Actions taken with the intention of achieving predetermined objectives or outcomes.