If a Monopolistically Competitive Firm Is Making Positive Economic Profits

question 42

Multiple Choice

If a monopolistically competitive firm is making positive economic profits, we would expect

• A)entry of other firms.
• B)the firm to continue making the positive economic profits.
• C)the firm to expand market share and the industry to move toward an oligopoly structure.
• D)the firm to hire more labor.

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Definitions:

Copper

A chemical element with symbol Cu and atomic number 29, known for its high thermal and electrical conductivity, often used in electrical wiring and plumbing.

Silver

A precious metal with high electrical conductivity, luster, and reflectivity, used in jewelry, currency, and industrial applications.

Coolie Trade

The historical trade of laborers from Asia, particularly China and India, under contracts that were often exploitative, to work in various parts of the world.