If a Monopolistically Competitive Firm Is Earning Above-Normal Profits, Then

question 119

True/False

If a monopolistically competitive firm is earning above-normal profits, then in the long run its demand will shift to the right and become more elastic.

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Definitions:

Secondary A2 Component

A component that is not primary but serves as an additional or supplementary element in various systems or models.

Primary A1 Component

The initial segment of the auditory cortex that processes basic auditory information.

Sometimes-Opponent-Process Theory

A theory suggesting emotional reactions are followed by opposite emotional states; initially applied to psychological explanations of drug addiction.

Unconditioned Stimulus

A stimulus that naturally triggers a response without the need for prior learning.