A Monopolistically Competitive Firm That Is Profitable in the Short

question 252

Multiple Choice

A monopolistically competitive firm that is profitable in the short run will face competition that will eventually eliminate the firm's profits in the long run.But the firm can stave off competition and continue to earn economic profits if

• A)it can successfully sue its competitors for copyright infringement.
• B)it can move to another country where there is less competition.
• C)it can lobby the government to establish a price floor for its product.
• D)it can find new ways to differentiate its product.

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Definitions:

Peptidoglycan

A complex polymer that forms the cell walls of bacteria, providing structural support and shape.

Plasma Membranes

The semi-permeable membrane enclosing the cytoplasm of a cell, controlling the movement of substances in and out of the cell.

Lipids

A group of naturally occurring molecules that include fats, waxes, sterols, and fat-soluble vitamins among others.

Thermoacidophiles

Microorganisms that thrive in extremely hot and acidic environments, often found in geothermal areas.