If a monopolistically competitive firm is earning profits in the short run:
A) barriers to entry will allow the firm to enjoy profits in the long run as well.
B) it is acting like a perfectly competitive firm.
C) other firms have an incentive to enter the market.
D) it should leave the industry before competition enters.
Correct Answer:
Verified
Q44: Like the monopolist, the monopolistically competitive firm:
A)faces
Q45: The graph shown displays the cost and
Q46: The graph shown displays the cost and
Q47: In the short run, monopolistically competitive firms
Q48: Which of the following would cause a
Q50: When firms currently in a monopolistically competitive
Q51: Once a monopolistically competitive firm innovates, it
Q52: The graph shown displays the cost and
Q53: For the monopolistically competitive firm, the demand
Q54: What is the primary difference between a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents