The Freedom of Entry and Exit in Monopolistic Competition Means

question 191

Multiple Choice

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

• A)enter the market when economic losses are being suffered.
• B)exit the market when economic profits are being earned.
• C)enter the market when normal profits are being earned.
• D)can enter a market to compete for economic profits and leave when economic losses are being incurred.
• E)find it easy to permanently earn an economic profit.

---

Definitions:

Midpoint

Refers to the exact middle point in a range of values, often calculated as the average of two extreme values in a set.

Sum

The result of adding a set of numbers or quantities together.

Mean Value

A statistical measure that determines the central tendency of a dataset by summing all values and dividing by the count of values, reflecting the dataset's average.

Exam Mean

The average score derived from a set of examination results, indicating the overall performance of the examinees.