What Do the Entry and Exit of Firms in Monopolistically

question 106

Multiple Choice

What do the entry and exit of firms in monopolistically competitive market guarantee

• A)that marginal revenue equals marginal cost, and average total cost is minimised.
• B)that firms can earn economic profits in the long run.
• C)that price equals average total cost in the long run.
• D)that firms can earn economic profits in the short run.

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Definitions:

Noise

Unwanted sound that can interfere with communication or distract from work.

Effective Listener

A person who actively engages in listening, fully concentrating, understanding, and responding thoughtfully to what is being said.

Judges Content

The evaluation and assessment of content by an individual or panel with expertise or authority in a specific field.

Delivery

The act of transporting or conveying an item from one location to another, also applicable in contexts such as speech where it refers to the manner of presenting information.