If a Monopolistically Competitive Firm Engages in a Successful Advertising

question 64

Multiple Choice

If a monopolistically competitive firm engages in a successful advertising campaign resulting in above positive economic profits then in the long run that firm will

• A)continue to earn positive economic profits because successful advertising is one of the barriers to entry
• B)earn zero economic profits because the government will begin to regulate the industry
• C)earn negative economic profits because it won't be able to advertise indefinitely
• D)earn zero economic profits because other firms will also begin to advertise
• E)continue to earn positive economic profits because most monopolistically competitive firms can earn economic profits in the long run

---

Definitions:

Primary Functions

The basic roles or activities that are essential for an organization or system to operate effectively.

Staffing

The process of hiring, training, and maintaining a workforce to meet the needs and goals of an organization.

Planning

The process of setting goals, developing strategies, and outlining tasks and schedules to accomplish the goals.

Emergent Leadership

Leadership that naturally arises within a group based on actions and decisions, rather than through formal appointment or titles.