A Monopolistically Competitive Firm That Is Profitable in the Short

question 252

Multiple Choice

A monopolistically competitive firm that is profitable in the short run will face competition that will eventually eliminate the firm's profits in the long run.But the firm can stave off competition and continue to earn economic profits if

• A)it can successfully sue its competitors for copyright infringement.
• B)it can move to another country where there is less competition.
• C)it can lobby the government to establish a price floor for its product.
• D)it can find new ways to differentiate its product.

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Definitions:

Reciprocal Affection

Mutual feeling of love or fondness between two or more individuals or entities.

Divorce

The legal dissolution of a marriage by a court or other competent body, terminating the marital union and relieving the parties of marital obligations.

Mayflower Compact

Document signed in 1620 aboard the Mayflower before the Pilgrims landed at Plymouth; the document committed the group to majority-rule government.

Government

The system or group of people governing an organized community, often a state, including its institutions, laws, and policies.