In Monopolistic Competition,there Are ________ Barriers to Entry and So

question 59

Multiple Choice

In monopolistic competition,there are ________ barriers to entry and so firms in monopolistic competition ________ earn an economic profit in the long run.

• A)high;can
• B)high;cannot
• C)no;can
• D)no;cannot
• E)sometimes;can sometimes

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Definitions:

Equilibrium Quantity

The level of goods or services supplied matches the consumer demand at the price which establishes market equilibrium.

Preset Price

refers to a price that is established in advance and does not change in response to market conditions or negotiation.

Price Ceiling

A legal maximum price set by the government on certain goods and services to prevent prices from becoming too high.

Price Floor

A government- or authority-imposed minimum price that can be charged for a good or service, typically set above the equilibrium price to aid producers.