The Freedom of Entry and Exit in Monopolistic Competition Means

question 117

Multiple Choice

The freedom of entry and exit in monopolistic competition means that firms

• A) enter the market when economic losses are being incurred.
• B) exit the market when economic profits are being made.
• C) enter the market when firms are making zero economic profit.
• D) can enter a market to compete for economic profits and leave when economic losses are being incurred.
• E) find it easy to permanently make an economic profit.

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Definitions:

Lack-of-control

A state or condition wherein an individual feels unable to regulate or manage their actions, emotions, or thoughts effectively.

Rumination

The repetitive and passive focus on symptoms of distress and the causes and consequences of these symptoms, often hindering problem-solving and relief.

Troubled Marriage

A marital relationship marked by ongoing conflicts, dissatisfaction, or dysfunction, often leading to emotional distress or separation.

Depression

A common mental health disorder characterized by persistent feelings of sadness, loss, or anger that interfere with daily activities.