If Monopolistically Competitive Firms Are Making Zero Economic Profit,then These

question 63

Multiple Choice

If monopolistically competitive firms are making zero economic profit,then these firms would

• A) leave the industry.
• B) charge higher prices.
• C) make demand more inelastic.
• D) remain in the industry.
• E) begin to collude illegally.

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Definitions:

Insurance Companies

Financial institutions that provide coverage against specified losses in exchange for premiums, mitigating financial risks for individuals and businesses.

Aging Population

A demographic trend characterized by an increase in the proportion of older individuals within a society, often leading to social, economic, and healthcare challenges.