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:

Distinctives

Features or characteristics that clearly differentiate one entity, product, or service from others.

Strategic Sourcing Process

A methodical approach to procurement that focuses on developing supply chains for critical goods and services to reduce costs and improve quality.

Six Sigma

A set of techniques and tools for process improvement aimed at reducing defects and improving quality.