Suppose Alexander is successful in establishing a profitable market for his vegan bakery in what is a monopolistically competitive industry.In the long run, Alexander will most likely find it ________ to remain profitable as he faces ________ competition in the vegan bakery market.
A)harder; more
B)harder; less
C)easier; more
D)easier; less

Question

Quizplus · Accepted Answer

In the long run, other firms are likely to enter the market, attracted by the profits that Alexander is making. This will increase competition and make it harder for Alexander to remain profitable. Therefore, the best choice is A, which states that it will be harder for Alexander to remain profitable in the face of more competition.

Suppose Alexander Is Successful in Establishing a Profitable Market for His