The Entry and Exit of Firms in a Monopolistically Competitive

question 48

Multiple Choice

The entry and exit of firms in a monopolistically competitive market guarantees that:

• A)economic profits and economic losses disappear in the long run
• B)economic profits can survive in the long run, but not economic losses
• C)economic losses will exist in the long run, but not economic profits
• D)both economic profits and economic losses will exist in the long run

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Definitions:

Extensor Digitorum

A muscle in the forearm that extends the fingers and thumb, facilitating hand movements.

Indirectly Inserts

Describes how certain structures, such as tendons or ligaments, connect to bone or muscle not directly but through an intermediary tissue.

Directly Inserts

The process by which certain structures, like tendons, attach directly to bones or other tissues.

Digits

Digits refer to the fingers and toes in humans and other animals, which are essential for various functions such as grasping and balance.