If the Number of Firms in a Monopolistically Competitive Industry

question 6

Multiple Choice

If the number of firms in a monopolistically competitive industry increases and the degree of product differentiation diminishes,

• A) the likelihood of realizing economic profits in the long run would be enhanced.
• B) individual firms would now be operating at outputs where their average total costs would be higher.
• C) the industry would more closely approximate pure competition.
• D) the likelihood of collusive pricing would increase.

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Definitions:

Professional Practice Principle

Guiding standards for behavior and actions within a specific profession, ensuring integrity, competence, and ethical conduct.

Nursing Assistive Personnel

Workers who provide basic patient care under the supervision of nursing staff, including tasks such as bathing, feeding, and assisting patients with their mobility.

Faucet

A valve controlling the release of liquids, typically water, from a system of pipes.

Hand Hygiene

Practices to remove or kill microorganisms on the hands, which is considered the most important measure to prevent the spread of infections.