A Monopolistically Competitive Firm That Is Profitable in the Short

question 252

Multiple Choice

A monopolistically competitive firm that is profitable in the short run will face competition that will eventually eliminate the firm's profits in the long run.But the firm can stave off competition and continue to earn economic profits if

• A)it can successfully sue its competitors for copyright infringement.
• B)it can move to another country where there is less competition.
• C)it can lobby the government to establish a price floor for its product.
• D)it can find new ways to differentiate its product.

---

Definitions:

Infinite Population

A population size that is so large it is considered limitless for practical statistical purposes, often used in theoretical models.

Independently

Without being influenced or affected by other factors or variables.

Standard Error

The estimate of the standard deviation of a sampling distribution.

Sample Mean

The average value of all the observations in a sample, calculated as the sum of the observations divided by the number of observations.