Exit of Existing Firms Will Occur in a Monopolistic Competitive

question 96

Multiple Choice

Exit of existing firms will occur in a monopolistic competitive industry until:

• A) marginal cost equals zero.
• B) marginal revenue equals zero.
• C) marginal revenue equals marginal cost.
• D) economic profit equals zero.

---

Definitions:

Router

A device that forwards data packets between computer networks, creating an overlay internetwork.

NIC

Network Interface Card, a hardware component that connects a computer to a network.

ISP

Internet Service Provider, a company that provides individuals and organizations access to the Internet and other related services like website building and virtual hosting.

Data Plan

A connectivity plan or text messaging plan in which data charges are separate from cell phone calling charges and are provided at rates different from those for voice calls.