In the Long Run,firms in Monopolistic Competition Make Zero Economic

question 89

Multiple Choice

In the long run,firms in monopolistic competition make zero economic profit.When firms make zero economic profit,in the long run hey exit the industry.

• A) The first sentence is correct and the second sentence is incorrect.
• B) The first sentence is incorrect and the second sentence is correct.
• C) Both sentences are correct.
• D) Both sentences are incorrect.
• E) More information about the presence or absence of barriers to entry and exit is needed to determine if the statements are true or false.

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Definitions:

Voluntary Participation

The principle that individuals have the right to choose whether to engage in a particular activity, especially relevant in ethical considerations of research and social programs.

Qualitative Research

Research that seeks to understand human behavior through observation and analysis of non-numerical data like texts, interviews, or images.

Quantitative Research

A research methodology that focuses on gathering numeric data and performing statistical, mathematical, or computational techniques to answer research questions.

Induction

Induction is a logical process by which general principles are derived from specific observations, commonly used in scientific research to form hypotheses and theories.