If Monopolistically Competitive Firms in an Industry Are Making an Economic

question 240

Multiple Choice

If monopolistically competitive firms in an industry are making an economic profit, then new firms will enter the industry and the product demand facing existing firms will

• A)increase.
• B)become less elastic.
• C)not be affected.
• D)decrease.

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Definitions:

Prediction

The act of forecasting future events or outcomes based on current or past information.

Evidence-Based Management

The systematic use of empirical data and scientific findings to inform managerial decision-making and organizational practices.

Human Relations Movement

A critique of classical management and bureaucracy that advocated management styles that were more participative and oriented toward employee needs.

Bureaucracy

Max Weber’s ideal type of organization that included a strict chain of command, detailed rules, high specialization, centralized power, and selection and promotion based on technical competence.