The Primary Reason Why Monopolistically Competitive Firms Cannot Make an Economic

question 23

Multiple Choice

The primary reason why monopolistically competitive firms cannot make an economic profit in the long run is because

• A) there are barriers to entry.
• B) there is freedom of entry.
• C) the antitrust laws prevent profit from increasing.
• D) recessions occur.
• E) they collude to make a normal profit.

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Definitions:

Capitulate

To surrender or give in to an opponent in a conflict after negotiation or resistance.

Conflict Management

The practice of identifying and handling conflicts in a sensible, fair, and efficient manner, with the aim of minimizing negative impacts and promoting positive outcomes.

Same Goal

A situation where multiple parties or individuals share a common objective or purpose they aim to achieve.

Dual Concerns Model

A theoretical framework in conflict resolution that assesses parties’ concerns regarding their own outcomes and the outcomes of others.