The Freedom of Entry and Exit in Monopolistic Competition Means

question 191

Multiple Choice

The freedom of entry and exit in monopolistic competition means that firms

• A)enter the market when economic losses are being suffered.
• B)exit the market when economic profits are being earned.
• C)enter the market when normal profits are being earned.
• D)can enter a market to compete for economic profits and leave when economic losses are being incurred.
• E)find it easy to permanently earn an economic profit.

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Definitions:

Pure Monopoly

A market structure where a single seller produces a unique product with no close substitutes, having complete control over the market price.

Marketing Form

A type or method of marketing activity or strategy, characterized by its particular characteristics or tactics.

Single Firm

A business entity that is independently owned and operated, often characterized by a concentrated decision-making process.

Pure Monopoly

A market structure where a single supplier controls all production and sales of a particular product or service, with no close substitutes available.