The Property of Free Entry Means That in Monopolistically Competitive

question 212

Multiple Choice

The property of free entry means that in monopolistically competitive markets:

• A) all remaining firms earn zero economic profits in the long run
• B) some firms will be able to earn economic profits in the long run
• C) some firms will be forced to incur economic losses in the long run
• D) the market structure will eventually be characterised by perfect competition in the long run

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Definitions:

Pns

Abbreviation for Peripheral Nervous System, which includes nerves and ganglia outside of the brain and spinal cord.

Transient Ischemic Attack

Often called a mini-stroke, a transient episode of neurological dysfunction caused by the loss of blood flow to the brain, spinal cord, or retina, without acute infarction.

Abbreviation

A summarized form of a word or phrase.

Electroencephalogram

A test that measures electrical activity in the brain using electrodes attached to the scalp, used to detect potential problems associated with this activity.