Assume a Monopolistically Competitive Firm Comes Up with a New

question 22

True/False

Assume a monopolistically competitive firm comes up with a new innovation that allows it to earn above-normal economic profits.Given the nature of the market in which it operates,over time those profits will be competed away as new competitors enter the market.

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Definitions:

Celery

A plant of the family Apiaceae, commonly used as a vegetable, known for its crunchy stalks.

Genetically Identical

Having the same genetic material or DNA sequence. In biology, this usually refers to organisms or cells produced through processes such as cloning.

Plant Cells

Cells that make up plant tissues, distinguished by their rigid cell walls, chloroplasts for photosynthesis, and large central vacuole.

Lignin

An organic substance binding the cells, fibers, and vessels of wood and plants, contributing to the stiffness and strength of the cell wall.