To Analyze Monopolistic Competition in Trade, We Make Several

question 72

Multiple Choice

To analyze monopolistic competition in trade, we make several
Assumptions about the market.Which of the following is NOT an
Assumption of monopolistic competition?

• A)many firms in the industry
• B)easy entry and exit
• C)constant long­run average cost
• D)increasing returns to scale, falling long­run average cost

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Definitions:

Amortization Period

The length of time over which a company gradually writes off the initial cost of an intangible asset.

Patent

A legal document granted by the government giving an inventor the exclusive right to produce, use, and sell an invention for a certain period of years.

Research And Development

A set of activities undertaken to improve existing products, services, or processes, or to create new ones.

Net Income

The amount of money remaining after all operating expenses, taxes, and interest are deducted from total revenue.