If Monopolistically Competitive Firms in an Industry Are Making an Economic

question 70

Multiple Choice

If monopolistically competitive firms in an industry are making an economic profit,then:

• A) new firms will enter the industry and product demand will increase for the existing firms.
• B) firms will exit the industry and product demand will decrease for the firms that remain.
• C) firms will exit the industry and product demand will increase for the firms that remain.
• D) new firms will enter the industry and product demand will decrease for the existing firms.

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Definitions:

Mantle

In geology, the layer of the Earth between the crust and the outer core; in biology, a tissue that encloses the vital organs of mollusks and secretes the shell.

Mollusk Group

A diverse group of invertebrate animals that includes snails, clams, squids, and octopuses, characterized by a soft body that is often protected by a hard shell.

Club Fungi

Fungi that produce spores on club-shaped structures during sexual reproduction.

Sexual Spores

Reproductive cells produced by sexual reproduction in fungi and some plants that can develop into a new individual.