Suppose electronic cigarette manufacturer NJOY is successful in establishing a profitable market for e-cigarettes in what is a monopolistically competitive industry. In the long run, NJOY will most likely find it ________ to remain profitable as they face ________ competition in the e-cigarette market.
A) harder; more
B) harder; less
C) easier; more
D) easier; less

Question

Quizplus · Accepted Answer

In a monopolistically competitive market, new firms are attracted by profits, increasing competition and making it harder for existing firms to maintain profitability in the long run.

Suppose Electronic Cigarette Manufacturer NJOY Is Successful in Establishing a Profitable