In a Monopolistically Competitive Market, the Number of Firms Adjusts

question 199

True/False

In a monopolistically competitive market, the number of firms adjusts until economic profits are driven to zero.

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Definitions:

Keynesians

Economists and followers of the economic theories of John Maynard Keynes, focusing on government intervention to mitigate the adverse effects of economic recessions.

Government Intervention

Involves actions taken by a government to affect the economy, typically through regulations, subsidies, tariffs, or monetary policies.

Depressions

Extended periods of economic downturn marked by severe declines in GDP, high unemployment, low consumer spending, and deflation, more intense and lasting longer than recessions.

Classical Economists

A group of economists in the late 18th and early 19th centuries who believed in free markets, the invisible hand guiding economies, and the theories of supply and demand.