Exhibit 9-3  a Monopolistic Competitive Firm in the Long Run

question 138

Multiple Choice

Exhibit 9-3  A monopolistic competitive firm in the long run If all firms in a monopolistic competitive industry have demand and cost curves like those shown in Exhibit 9-3, we would expect that in the long run:

• A) a number of new firms will enter the industry.
• B) some firms will leave the industry.
• C) firms in the industry earn zero economic profits.
• D) all firms will leave the industry.

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Definitions:

Equivalent Payment

A payment amount that, when adjusted for interest and time, is equal in value to a different payment amount over a different time period.

Focal Date

A specific point in time that serves as a reference or target for events or operations.

Equivalent Payment

A term related to finance that typically involves finding a payment amount that equates to an equal value under different conditions.

Scheduled

Planned or organized for a certain time or date.