The Freedom of Entry and Exit in Monopolistic Competition Means

question 117

Multiple Choice

The freedom of entry and exit in monopolistic competition means that firms

• A) enter the market when economic losses are being incurred.
• B) exit the market when economic profits are being made.
• C) enter the market when firms are making zero economic profit.
• D) can enter a market to compete for economic profits and leave when economic losses are being incurred.
• E) find it easy to permanently make an economic profit.