The Free Entry and Exit of Firms in a Monopolistically

question 640

Multiple Choice

The free entry and exit of firms in a monopolistically competitive market guarantees that

• A)both economic profits and economic losses can persist in the long run.
• B)both economic profits and economic losses disappear in the long run.
• C)economic profits, but not economic losses, can persist in the long run.
• D)economic losses, but not economic profits, can persist in the long run.

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Definitions:

Gaseous Molecules

Particles consisting of two or more atoms bonded together that exist in the gas state at room temperature.

Evolution Of Life

The gradual process by which different kinds of living organisms are thought to have developed and diversified from earlier forms during the history of the earth.

Radioactive Elements

Chemical elements that are unstable and decay by emitting radiation, including alpha, beta, or gamma rays, used in various applications such as medicine and energy production.