A firm in long-run equilibrium under monopolistic competition will earn
A) positive oligopoly profits because each firm sells a differentiated product.
B) zero economic profits because of free entry.
C) negative economic profits because it has economies of scale.
D) positive economic profit if it engages in international trade.
E) positive monopoly profits because each sells a differentiated product.
Correct Answer:
Verified
Q23: Imagine scale economies were not only external
Q24: Intra-industry trade is most common in the
Q25: Q26: Q27: A product is produced in a monopolistically Q29: International trade based solely on internal scale Q30: A monopoly firm will maximize profits by Q31: Intra-industry trade will tend to dominate trade Q32: International trade based on external scale economies Q33: An industry is characterized by scale economies,
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