Which of the Following Describes the Long-Run Situation for a Firm

question 109

Multiple Choice

Which of the following describes the long-run situation for a firm in a monopolistically competitive market?

• A) Competition drives out firms until there is only one left.
• B) New firms enter the market because of monopoly profits, the firm's demand curve shifts to the left and becomes flatter, and monopoly profits disappear.
• C) New firms enter the market and eventually there is only one kind of product, and each firm agrees to share the profits.
• D) Consumers are left with no choices and no close substitutes, and firms make higher profits.

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Definitions:

Cultural Universals

Common cultural features found in all societies.

Interminling

The action of mixing or blending together different elements, groups, or substances.

Countercultural Groups

are social groups that reject the prevailing norms and values of society in favor of alternative lifestyles or beliefs.

Social Justice

A principle calling for fair and just relations between the individual and society, emphasizing equal rights, opportunities, and treatment.