In the Long Run, Under Monopolistic Competition, When Firms Advertise

question 9

Multiple Choice

In the long run, under monopolistic competition, when firms advertise,

• A) they will still earn zero economic profit.
• B) they can earn positive economic profit by increasing market share.
• C) the market price must fall.
• D) the market price must rise.

---

Definitions:

Variable

An element, feature, or factor that is likely to vary or change; in research, it is something that is measured or manipulated to assess its effects on an outcome.

Statistic

A numerical value that describes or summarizes some aspect of a set of data.

Distribution

The way in which values in a dataset are spread out or clustered across a range.

Variability

Variability is a statistical concept that describes the extent to which data points in a data set differ from each other and from the average or mean value of the set.