The Reason Monopolistically Competitive Firms Have Difficulty Maintaining a Profit

question 249

Multiple Choice

The reason monopolistically competitive firms have difficulty maintaining a profit in the long run is that

• A) buyers refuse to pay higher prices over time.
• B) costs tend to increase as production rises.
• C) ease of entry into the market encourages new firms to enter and force down the price.
• D) income taxes paid by the firms rise as their profits rise.

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Definitions:

Experience-Expectant

Describes neural growth that requires a certain kind of environmental stimulation that is almost certain to occur in the experience of most members of a species. An example is development of the visual system that requires exposure to light in order to occur.

Epigenesis

The control of genetic expression by both regulatory DNA and environmental factors.

Genetic Expression

The process by which information from a gene is used to synthesize functional gene products, such as proteins, which can influence an organism's traits.

Transcription

The complex chain of cellular processes that involves translating the code specified by a gene into the production of a protein. This series of biochemical events ultimately accounts for genetic expression or influence.