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:

Consequence

A result or effect of an action or condition.

Détente

A period of improved relations between two countries that were previously in conflict with each other, notably used to describe the easing of tensions between the United States and the Soviet Union during the Cold War era.

Nixon

37th President of the United States, known for his policy of détente with the Soviet Union and the scandal of Watergate that led to his resignation.

Kissinger

Refers to Henry Kissinger, a significant figure in American foreign policy, known for his role as Secretary of State and National Security Advisor during the Nixon and Ford administrations, his diplomacy tactics, and his contributions to international relations.