Why Do Most Firms in Monopolistic Competition Typically Make Zero

question 238

Multiple Choice

Why do most firms in monopolistic competition typically make zero profit in the long run?

• A)because firms produce differentiated products
• B)because the lack of entry barriers would compete away profits
• C)because firms do not produce at their minimum efficient scale
• D)because the total market is not large enough to accommodate so many firms

Understand the classification and accounting for long-term investments.

Calculate and understand the effects of exchange rates on financial transactions.

Describe and differentiate between various types of investments (held-to-maturity, available-for-sale, trading securities).

Understand the principles of equity method accounting.

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