What Do the Entry and Exit of Firms in Monopolistically

question 151

Multiple Choice

What do the entry and exit of firms in monopolistically competitive market guarantee?

• A) That marginal revenue equals marginal cost, and average total cost is minimised
• B) That firms can earn economic profits in the long run
• C) That price equals average total cost in the long run
• D) That firms can earn economic profits in the short run

---

Definitions:

Suicide By Cop

A situation where an individual engages in threatening behavior with the intention of provoking a lethal response from law enforcement officers.

Foreknowledge

Having prior knowledge or awareness of an event, action, or situation before it happens, often implying a level of insight or information about future occurrences.

Durkheimian Model

A sociological approach based on the works of Émile Durkheim that focuses on social solidarity and the function of societal institutions in maintaining social order.

Kamikaze Pilots

Military aviators of World War II Japan who carried out suicide attacks, typically against naval vessels, as part of their duty.