If Monopolistic Competitors Must Expect a Process of Entry and Exit

question 19

Multiple Choice

If monopolistic competitors must expect a process of entry and exit like perfectly competitive firms,

• A) they will be unable to earn higher-than-normal profits in the short run.
• B) they will wish to cooperate to make decisions about what price to charge.
• C) they will wish to cooperate to make decisions about what quantity to produce.
• D) they will be unable to earn higher-than-normal profits in the long run.

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