In the Monopoly Market Structure, New Firms

question 142

Multiple Choice

In the monopoly market structure, new firms

• A)cannot profitably enter the industry, even in the long run
• B)may freely enter and leave the industry in both the short run and the long run
• C)may freely enter and leave the industry in the long run only
• D)may freely enter and leave the industry in the short run only
• E)have no incentive to enter the industry, even if economic profits are present

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Definitions:

Hedonic Adaptation

The observed process of people returning to a set level of happiness despite major positive or negative events or life changes.

Natural Selection

A mechanism of evolution where organisms better adapted to their environment tend to survive and produce more offspring, shaping the genetics of populations.

Pleasurable Events

Activities or occurrences that induce a state of enjoyment or happiness.

Circular Reasoning

A logical fallacy in which the conclusion of an argument is used as a premise of the same argument.