Assume That in a Monopolistically Competitive Industry, Firms Are Earning

question 270

Multiple Choice

Assume that in a monopolistically competitive industry, firms are earning economic profit. This situation will

• A)reduce the excess capacity in the industry as firms expand production.
• B)attract other firms to enter the industry, causing the existing firms' profits to shrink.
• C)cause firms to standardize their product to limit the degree of competition.
• D)make the industry allocatively efficient as each firm seeks to maintain its profits.

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Definitions:

Self-monitor

The act of observing and regulating one's own behavior in various social contexts in order to achieve desired social outcomes.

Self-discipline

The ability to control one's feelings, impulses, and actions to achieve long-term goals.

Self-regulate

The ability of an individual to manage their emotions, thoughts, and behaviors in accordance with their goals.

Self-diagnose

The process of identifying or determining one's own medical condition without professional medical advice.