Figure: Monopolistic Competition II (Figure: Monopolistic Competition II)

question 3

Multiple Choice

Figure: Monopolistic Competition II (Figure: Monopolistic Competition II) Which of the panels in the figure Monopolistic Competition II shows a monopolistic competitor earning a profit in the short run?

• A)panel a
• B)panel b
• C)panel c
• D)panels a and c

---

Definitions:

Negotiated Tariff Rates

Tariff rates determined through bargaining between countries, rather than set unilaterally, often resulting in lower duties.

Free-Trade Zone

A designated area where goods can be imported, stored, handled, manufactured, or reconfigured without being subject to import duties.

GATT

The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement aimed at reducing global trade barriers and promoting international trade through the reduction of tariffs and other trade restrictions.

European Union

A political and economic union of 27 European countries that participate in a single market allowing free movement of goods, services, and people.