If There Are Economic Profits in a Monopolistically Competitive Industry

question 23

Multiple Choice

If there are economic profits in a monopolistically competitive industry, they will generally be competed away through the

• A) introduction of brand name products by existing firms.
• B) manipulation of the demand curve.
• C) increasing advertising budgets of existing firms.
• D) entry of new firms.
• E) exit of existing firms.

---

Definitions:

Triphosphates

Organic compounds that contain three phosphate groups and are involved in energy transfer within cells, ATP being the most notable example.

Transcription

The process by which the genetic information in a strand of DNA is copied into a new molecule of messenger RNA (mRNA).

Translation

The process by which the sequence of bases in messenger RNA is converted into the sequence of amino acids in a protein by ribosomes and transfer RNA.

Prokaryotes

Microorganisms that lack a distinct nucleus and other organelles due to the absence of a membrane surrounding their genetic material.