If There Are Exactly 20 Firms in the Monopolistically Competitive

question 107

Multiple Choice

If there are exactly 20 firms in the monopolistically competitive industry that are identical to the firm shown,in the long run,we would expect that

• A) total industry economic profit would be exactly equal to 20 times the profit of each individual firm.
• B) total industry economic profit would be greater than 20 times the profit of each individual firm.
• C) industry costs would rise.
• D) new firms would desire to enter the industry,but would not be able to because of high entry barriers.
• E) total industry economic profit would be zero.

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Definitions:

Defective Goods

Items that are flawed or lack the quality promised, making them unfit for their intended use.

Place Of Shipment

The location where goods are loaded and dispatched to the buyer according to the terms of a sales contract.

Time And Place

The specific moment and location where an event occurs or is scheduled to occur.

Rejected Goods

Items that have been refused acceptance by the buyer because they do not meet the specifications, quality standards, or conditions agreed upon in the contract.