In the Model of Monopolistic Competition, If Firms Have ________

question 54

Multiple Choice

In the model of monopolistic competition, if firms have ________ average cost curves, then opening trade will cause ________ firms to ________ the industry.

• A) different; more efficient; enter
• B) symmetric; less efficient; enter
• C) different; less efficient; exit
• D) symmetric; less efficient; exit
• E) symmetric; more efficient; enter

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Definitions:

Cretaceous Era

A geological epoch that lasted from about 145 to 66 million years ago, at the end of the Mesozoic Era, known for the extinction of dinosaurs.

Meteor Impact

The collision of a meteoroid with the Earth or another planet, causing effects ranging from craters to climate changes depending on the size and speed of the meteoroid.

Extinction

The process through which a species ceases to exist due to the death of its last remaining members.

Dinosaurs

A diverse group of prehistoric reptiles that lived during the Mesozoic Era, now extinct.