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The Freedom of Entry and Exit in Monopolistic Competition Means

Question 14

Multiple Choice

The freedom of entry and exit in monopolistic competition means that firms


A) enter the market when economic losses are being suffered.
B) exit the market when economic profits are being earned.
C) enter the market when normal profits are being earned.
D) can enter a market to compete for economic profits and leave when economic losses are being incurred.
E) find it easy to permanently earn an economic profit.

Correct Answer:

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