The Freedom of Entry and Exit in Monopolistic Competition Means

question 117

Multiple Choice

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

• A) enter the market when economic losses are being incurred.
• B) exit the market when economic profits are being made.
• C) enter the market when firms are making zero economic profit.
• D) can enter a market to compete for economic profits and leave when economic losses are being incurred.
• E) find it easy to permanently make an economic profit.

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Definitions:

Emphysema

A long-term, progressive lung disease that primarily causes shortness of breath due to the over-inflation of the alveoli (air sacs in the lungs).

Cystic Fibrosis

A genetic disorder affecting the exocrine glands, leading to thick mucus buildup in the lungs and digestive tract.

Alveolar Air

The air present within the alveoli, the tiny air sacs in the lungs where gas exchange occurs.

Venous Blood

Blood that is returning to the heart through the veins, characterized by a lower oxygen content and a darker color compared to arterial blood.