For an Individual Firm Operating in a Monopolistically Competitive Industry

question 37

Multiple Choice

For an individual firm operating in a monopolistically competitive industry, the firm ______ earn short-run economic profits and ________ earn long-run economic profits.

• A)can; can.
• B)cannot; cannot
• C)can; cannot
• D)cannot; can

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Definitions:

Labour Expenses

Expenses related to employee compensation, such as paychecks, bonuses, benefits, and tax contributions.

Labour Force

The total number of people aged 16 and over who are either employed or actively seeking employment.

Technology

The application of scientific knowledge for practical purposes, especially in industry and improvements in tools, machines, techniques, systems, and methods of organization.

Benchmarking HR Activities

The practice of comparing an organization's HR processes and performance metrics to industry standards or best practices to identify areas of improvement.