Which of the Following Describes the Long­run Situation in a

question 83

Multiple Choice

Which of the following describes the long­run situation in a
Monopolistically competitive market?

• A)Competition drives out firms until there is only one left.
• B)New firms enter the market because of monopoly profits, the demand curve shifts to the left and becomes flatter, and profits
• Disappear.
• C)New firms enter the market and eventually there is only one kind of product, and each firm agrees to share the profits.
• D)Consumers are left with no choices and no close substitutes, and firms make higher profits.

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Definitions:

Formula Presentation

A presentation by which the salesperson follows a general outline that allows more flexibility and tries to determine prospect needs.

Repeat Purchases

The action by customers of buying a product or service again, often indicating satisfaction and loyalty to a brand.

Need-Satisfaction

A sales approach focusing on identifying and meeting the explicit needs of the customer with suitable products or services.

Highly Structured

Describes systems or processes that are organized in a clear, well-defined manner, often with strict rules or arrangements.