If Short-Run Economic Profits Are Greater Than Zero for Firms

question 14

Multiple Choice

If short-run economic profits are greater than zero for firms in a monopolistically competitive market, in the long run we expect

• A) entry barriers to prevent competing firms from entering this market.
• B) the demand curve for firms in the market to shift to the right.
• C) competing firms to enter the market and sell similar products.
• D) profits to increase.

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Definitions:

Middle Class

A social group between the upper and working classes, including professionals and business people, characterized by moderate income and standard of living.

Osteoporosis

A medical condition characterized by the weakening of bones, making them fragile and more likely to break.

Marathon

A long-distance running race with an official distance of 42.195 kilometers (approximately 26.219 miles), usually run as a road race.

Sedentary

A lifestyle characterized by a lot of sitting and lying down with very little to no exercise, leading to various health risks.