Which of the Following Statements Concerning a Monopolistically Competitive Industry

question 101

Multiple Choice

Which of the following statements concerning a monopolistically competitive industry is correct?

• A)If there are short-run losses,firms will exit from the industry and the demand of the remaining firms will decrease.
• B)If there are short-run losses,firms will exit from the industry and the demand of the remaining firms will increase.
• C)If there are short-run profits,firms will exit from the industry and the demand of the remaining firms will increase.
• D)If there are short-run profits,firms will enter the industry and the demand of the remaining firms will increase.

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Definitions:

Aid to the Needy

Assistance programs aimed at providing financial, food, medical, or other forms of support to individuals or communities in need.

Representative Sample

A representative sample is a subgroup of a population selected for research, which accurately reflects the characteristics of the larger group, ensuring the results are generalizable to the broader population.

Larger Population

A larger population refers to a significant number of individuals or entities in a specified area or group, often considered in statistical analyses.

Population

All those in a group being studied, from which samples may be drawn. Except for national studies, this does not refer to a country’s whole population.