In Monopolistic Competition,there Are ________ Barriers to Entry and So

question 13

Multiple Choice

In monopolistic competition,there are ________ barriers to entry and so firms in monopolistic competition ________ make an economic profit in the long run.

• A) high; can
• B) high; cannot
• C) no; can
• D) no; cannot
• E) sometimes; can sometimes

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Definitions:

Fixed Manufacturing Overhead

Costs associated with manufacturing that remain constant regardless of the level of production, such as rent and salaries of managerial staff.

Machine-Hours

A measurement unit used in accounting and manufacturing to allocate costs to products based on the number of hours machines are operated during the production process.

Variable Manufacturing Overhead

Expenses in the production process that vary with the level of production output, such as utilities or materials costs.

Fixed Manufacturing Overhead

Costs that do not change with the level of production output and are required to operate a manufacturing facility, such as rent and salaries of managers.