Suppose There Are Many Independent Dry Cleaners in Your City,each

question 65

Multiple Choice

Suppose there are many independent dry cleaners in your city,each of which is earning economic profits.According to the theory of monopolistic competition,

• A)existing dry cleaners will engage in non- price competition and maintain their profits in the long run.
• B)existing dry cleaners will cooperate and maximize their joint profits.
• C)existing dry cleaners will cooperate and restrict entry of new firms.
• D)new dry cleaners will enter this market until each firm is earning zero profits.
• E)existing dry cleaners will expand until they reach the quantity associated with minimum long- run average cost.

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Definitions:

Vagina

A muscular and tubular part of the female genital tract, extending from the vulva to the cervix, playing roles in sexual intercourse, childbirth, and the menstrual cycle.

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The scientific study of the mind and behavior, encompassing various aspects of conscious and unconscious experience as well as thought.

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The physiological and psychological outcomes resulting from the consumption of pharmaceutical substances or recreational drugs.