In the Long Run, If Some Monopolistically Competitive Firms Are

question 8

Multiple Choice

In the long run, if some monopolistically competitive firms are earning economic losses then

• A) firms will leave the industry.
• B) raise prices until they earn economic profits.
• C) they will increase production until marginal costs fall.
• D) new firms will enter the industry.

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Definitions:

Psychological Disorders

Patterns of behavioral, cognitive, emotional, or physical symptoms shown by an individual, significantly affecting multiple areas of life and often considered deviant or distressing within their cultural context.

Impulsive

Impulsive describes a tendency to act quickly on desires and feelings without considering the consequences.

Panic Disorder

A psychiatric disorder characterized by unexpected and repeated episodes of intense fear accompanied by physical symptoms that may include chest pain, heart palpitations, shortness of breath, dizziness, or abdominal distress.

Intense Fear

An overwhelming and often irrational sense of apprehension or panic, usually in response to a specific stimulus or situation.