When Firms in Monopolistic Competition Are Making an Economic Profit

question 260

Multiple Choice

When firms in monopolistic competition are making an economic profit, firms will

• A) enter the industry, and demand will increase for the original firms.
• B) exit the industry, and demand will increase for the firms that remain.
• C) exit the industry, and demand will decrease for the firms that remain.
• D) enter the industry, and demand will decrease for the original firms.

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Definitions:

Fair Trials

Legal proceedings that adhere to established rules and principles, ensuring impartiality and the right to a fair judgment for all parties involved.

Moral Dilemmas

Situations in which a decision must be made between two or more actions that are ethical but mutually exclusive.

Kantian Moral Theory

A philosophical approach to ethics that emphasizes duty, rationality, and the categorical imperative as foundational principles of moral action.

Deontological Evaluation

An ethical assessment based on the principle that the morality of an action is based on its adherence to rules or duties, regardless of the outcomes.