Both Perfectly Competitive and Monopolistically Competitive Industries Have Many Firms,in

question 160

Multiple Choice

Both perfectly competitive and monopolistically competitive industries have many firms,in fact so many that,in the long run

• A) only one firm can survive in the industry,leading to monopoly.
• B) costs must increase due to diseconomies of scale.
• C) costs must decrease due to economies of scale.
• D) economic profit is "competed away."
• E) economic profit can continue.

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Definitions:

U.S. Airline Industry

A sector that encompasses all airlines operating within the United States, including domestic and international carriers.

Agricultural Markets

Marketplaces where agricultural products, including crops and livestock, are bought and sold, often influenced by seasonal cycles and global demand.

Arbitrage

Practice of buying at a low price at one location and selling at a higher price in another.

Convertible Bond

A type of bond that can be converted by the holder into a specified number of shares of the issuing company's stock at certain times during its life, usually at the discretion of the bondholder.