In the Monopolistic Competition Model,the Attribute of Free Entry Suggests

question 110

Multiple Choice

In the monopolistic competition model,the attribute of free entry suggests that:

• A) all firms earn zero economic profits in the long run.
• B) some firms will be able to earn economic profits in the long run.
• C) some firms will be forced to incur economic losses in the long run.
• D) the market structure will eventually be characterized by perfect competition in the long run.

---

Definitions:

Environmental Impact

The effect of human activities or industrial processes on the natural environment, including pollution and resource depletion.

Recyclable Components

Parts of a product that can be processed and used again in the manufacturing of new products, reducing the need for raw materials.

Purchases

Transactions involving the buying of goods and services, either for consumption, use in production, or resale.

Accounts Payable

The amount of money that a company owes to its suppliers or creditors for goods and services received.