If a Firm Is Making Abnormal Profits in the Short

question 12

Multiple Choice

If a firm is making abnormal profits in the short run in monopolistic competition:

• A) Some firms will leave the industry.
• B) Some firms will enter the industry increasing costs and increasing demand.
• C) Some firms will enter the industry shifting demand for the established firms' products to the left.
• D) Some firms will enter the industry reducing the total supply in the market.

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Definitions:

Installment Plans

Payment methods that allow customers to purchase goods or services with scheduled payments over a specified period.

Willful Or Malicious Conduct

Behavior done intentionally or with reckless disregard to the rights and safety of others, often resulting in harm or damage.

Non-dischargeable Debts

Debts that cannot be eliminated through bankruptcy, including most taxes, student loans, alimony, and child support.

Student Loans

Borrowed money that is used to pay for educational expenses and must be repaid with interest.