If Firms in a Monopolistically Competitive Industry Are Making Profits

question 145

Multiple Choice

If firms in a monopolistically competitive industry are making profits in the short run

• A)barriers to entry will be erected to keep out rivals.
• B)some firms will ultimately exit the industry.
• C)they will resort to advertising wars to help sustain these profits.
• D)new firms will enter the market.

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Definitions:

Low-Amperage Circuits

Electrical circuits designed to carry a small amount of electrical current, often for delicate electronic devices or low power applications.

Resistance

The opposition offered by a material or device to the flow of electrical current, measured in ohms.

Decrease

A reduction in size, quantity, or degree.

Increase

A rise in the quantity or value of something.