Nike Is a Firm in Monopolistic Competition

question 269

Multiple Choice

Nike is a firm in monopolistic competition.If Nike is earning an economic profit from new cross-training shoe,over time the demand for these shoes

• A)increases as new firms enter the market.
• B)decreases as new firms enter the market.
• C)does not change as new firms enter the market.
• D)decreases as firms exit the market.
• E)increases as firms exit the market.

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Definitions:

Circadian Rhythm

The internal process that regulates the sleep-wake cycle and repeats roughly every 24 hours.

Environmental Stimulus

A change in the environment that elicits a response from an organism.

Sign Stimulus

Any stimulus that elicits a fixed action pattern in an animal.

Sign Stimulus

An external sensory cue that triggers a fixed action pattern in an organism, an innate response to a specific stimulus.