To Maximise Their Profits and Defend Those Profits from Competitors

question 235

Multiple Choice

To maximise their profits and defend those profits from competitors, monopolistically competitive firms must

• A)lobby government to erect barriers to entry in their industries.
• B)limit foreign competition in their markets by encouraging the government to impose tariffs and other trade restrictions.
• C)differentiate their products.
• D)achieve economies of scale.

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Definitions:

Intrinsic Reward

A type of motivation driven by an internal reward, such as personal satisfaction or enjoyment in the task itself.