In the Model of Monopolistic Competition,if Firms Have ________ Average

question 45

Multiple Choice

In the model of monopolistic competition,if firms have ________ average cost curves,then opening trade will cause ________ firms to ________ the industry.

• A) different; less efficient; exit
• B) different; more efficient; enter
• C) symmetric; less efficient; exit
• D) symmetric; more efficient; enter
• E) symmetric; less efficient; enter

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Definitions:

Oral Agreement

A verbal commitment between parties to do or not do something, which can be legally binding, although proving the terms and existence can be challenging.

Payable

Refers to an amount of money that is owed by a person, company, or organization to another entity and is due to be paid.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to a specified person or entity.

Issued

Released or distributed officially by an authority, such as documents, currency, or rulings.