If in the Short Run, a Firm in a Monopolistically

question 150

Multiple Choice

If in the short run, a firm in a monopolistically competitive market is making a loss, then in the long run it will:

• A) either have exited the market or make a zero economic profit
• B) definitely exit the market
• C) make a positive economic profit
• D) continue making a loss but stay in the market

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Definitions:

Question of Fact

A legal term used in lawsuits to denote an issue that requires the examination of evidence to determine the truth.

Traffic Light

A traffic light is a signaling device positioned at road intersections, pedestrian crossings, and other locations to control the flow of traffic by assigning the right of way according to a universally understood color code.

Premeditation

The act of planning or plotting in advance, often used in legal contexts to imply forethought prior to committing a crime.

First Amendment

A provision in the United States Constitution protecting freedoms concerning religion, expression, assembly, and the right to petition.