In Theory, in the Long Run, Monopolistically Competitive Firms Earns

question 52

Multiple Choice

In theory, in the long run, monopolistically competitive firms earns zero profits.However, in reality there are some ways by which a firm can avoid losing profits.Which of the following is one such way?

• A)Gradually increase the markup on the goods produced
• B)Lower the price of its products to expand its market share
• C)Identify new markets and develop products precisely for those markets
• D)Find a market niche and keep it as narrow as possible so as to prevent other producers from entering this market segment

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Definitions:

Humanism

A philosophical and ethical stance that emphasizes the value and agency of human beings, individually and collectively, and generally prefers critical thinking and evidence over acceptance of dogma or superstition.

Potential

Refers to the capacity or ability that exists within a person or system that has yet to be utilized or expressed.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior.

Abraham Maslow

A pioneering psychologist best known for creating Maslow's hierarchy of needs, a theory in human psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.