In the Long Run, Profits in a Monopolistically Competitive Market

question 18

Multiple Choice

In the long run, profits in a monopolistically competitive market are zero because:

• A) of government regulations.
• B) of collusion.
• C) firms are free to enter and exit the market.
• D) firms produce a differentiated product.

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Definitions:

Decedent

The deceased person.

Escheat

Property of a decedent goes to the state if not disposed of by a will and if the decedent has no heirs.

Codicil

A supplemental modification of an existing will.

Organic Solidarity

Emile Durkheim’s concept to describe the form of social cohesion that exists in complex societies with a high division of labor. Such societies have an organic character because of the necessary interdependence of their specialized and highly individuated members.