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:

Teller Transaction

A banking transaction conducted with a bank employee, such as a deposit or withdrawal, rather than through an automated mechanism.

ATM Transaction

An action carried out through an Automated Teller Machine (ATM), such as withdrawing cash, depositing funds, or checking account balances.

Barter Economy

An economic system where goods and services are exchanged directly for other goods and services without the use of money as a medium.

Money Economy

A system where goods and services are exchanged using money as a medium, rather than through barter.