If a Monopolistically Competitive Firm Is Earning a Normal Profit

question 186

Multiple Choice

If a monopolistically competitive firm is earning a normal profit, it

• A) can expect to see more competitors in the future.
• B) can expect to see about the same amount of competition in the future.
• C) can expect to see fewer competitors in the future.
• D) will probably exit the market in the long run.

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Definitions:

Company Profits

The financial surplus generated from a company's operations after subtracting all expenses from its total revenue.

Job-Related Skills

Specific abilities and knowledge required to perform particular tasks or duties in a job.

Rewards

Benefits, both tangible and intangible, given to individuals or groups as recognition for their efforts and achievements.

Timeliness

The quality of being done or occurring at a favorable or useful time; appropriateness to the time or occasion.