Monopolistic Competition Is a Very Common Industry Structure

question 29

True/False

Monopolistic competition is a very common industry structure. Firms in this industry face downward-sloping demand curves, but they only earn normal profits in the long run because potential firms can easily enter the industry.

---

Definitions:

Constructive Processing

Referring to the retrieval of memories in which those memories are altered, revised, or influenced by newer information.

Hindsight Bias

The tendency to falsely believe, through revision of older memories to include newer information, that one could have correctly predicted the outcome of an event.

Childhood Reminisce

The act or process of recalling and sharing memories from one's childhood.

Flashbulb Memories

Type of automatic encoding that occurs because an unexpected event has strong emotional associations for the person remembering it.