Under Monopolistic Competition, Profits Cannot Persist Because New Firms Will

question 106

True/False

Under monopolistic competition, profits cannot persist because new firms will be attracted to the market.

---

Definitions:

Direct Method

A method of allocating service department costs directly to producing departments without any intermediate allocation steps.

Accrued Liabilities

Accrued liabilities are financial obligations that a company has incurred but has not yet paid or recorded in its financial statements.

Direct Method

A cost allocation method that assigns service department costs directly to producing departments without any intermediate allocations.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid.