If a Firm in Monopolistic Competition Is Making an Economic

question 75

Multiple Choice

If a firm in monopolistic competition is making an economic profit,

• A) it is in the long run.
• B) other firms can enter the market.
• C) it can do so because it is "monopolistic" and other firms will have a hard time competing with it.
• D) its average cost must exceed its marginal cost.
• E) The question errs because firms in monopolistic competition cannot make an economic profit.

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Definitions:

Metaphysical

Pertaining to the philosophy or theory of reality that is beyond the physical or scientific understanding; dealing with the nature of existence and the universe.

Ideological Arguments

Debates or discussions driven by deeply held beliefs or values, often relating to politics, morality, or ethics.

Faith

Strong belief or trust in something or someone, often without empirical evidence.

Conviction

A strongly held belief or opinion.