In the Long Run, If Some Monopolistically Competitive Firms Are

question 8

Multiple Choice

In the long run, if some monopolistically competitive firms are earning economic losses then

• A) firms will leave the industry.
• B) raise prices until they earn economic profits.
• C) they will increase production until marginal costs fall.
• D) new firms will enter the industry.

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Definitions:

Due Date Fulfillment

The process of completing a task, job, or order by its specified due date, ensuring timely delivery to customers.

Market Servicing

The activities and strategies a company uses to support its market presence, including distribution, customer support, and promotional efforts.

Design Phase

A stage in product development where the specifications and features of a product are planned and detailed.

Manufacturing Cycle

The complete series of steps involved in producing a product, from raw material procurement to the final good.