In the Long Run When Monopolistically Competitive Firms Advertise

question 73

Multiple Choice

In the long run when monopolistically competitive firms advertise,

• A)they will still earn zero economic profit
• B)they can earn positive economic profit by increasing market share
• C)the market price must fall
• D)the market price must rise
• E)there will be fewer units sold than in the short run

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Definitions:

Tendons

Fibrous connective tissues that attach muscles to bones, facilitating movement by transferring forces.

Hyoid Bone

A U-shaped bone in the throat that supports the tongue and is involved in swallowing.

Floating Rib

The last two pairs of ribs in humans that are not attached to the sternum or to other ribs, providing flexibility and mobility.

Mandible

The lower jawbone in vertebrates; in insects and other arthropods, one of a pair of mouthparts used for biting and grinding food.