In the Long Run When Monopolistically Competitive Firms Advertise

question 73

Multiple Choice

In the long run when monopolistically competitive firms advertise,

• A)they will still earn zero economic profit
• B)they can earn positive economic profit by increasing market share
• C)the market price must fall
• D)the market price must rise
• E)there will be fewer units sold than in the short run

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Definitions:

Deflation

A reduction in the general price level of goods and services in an economy over a period of time.

China

A country in East Asia, the world's most populous nation, with a rich cultural history and a significant global economic influence.

Canada

A country in North America known for its vast landscapes, multicultural cities, and bilingual English-French heritage.

George W. Bush

He served as the 43rd President of the United States from 2001 to 2009, notable for his responses to the September 11 attacks and initiating the Iraq War.