What Will Be the Long-Run Result of New Firms Entering

question 113

Multiple Choice

What will be the long-run result of new firms entering a monopolistically-competitive industry?

• A)The price charged by the representative firm will be equal to marginal cost.
• B)The representative firm will certainly incur losses.
• C)While the representative firm will not make economic profits,it will be able to make normal profits.
• D)The representative firm will be able to maintain economic profits.

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Definitions:

Rapid

Quickly occurring or moving at a fast pace.

Repression

A defense mechanism where an individual unconsciously blocks unpleasant memories, thoughts, or feelings from their awareness.

Freud

An Austrian neurologist named Sigmund Freud created psychoanalysis, a technique for addressing mental disorders through conversations between a therapist and their patient.

Torture

The act of inflicting severe pain or suffering on someone, often to punish, coerce, or gather information.