How might a monopolistically competitive firm continually earn economic profit greater than zero? To earn economic profit greater than zero, a monopolistically competitive firm must A. be the first firm to enter a market to obtain first-mover advantages. B. eliminate excess capacity by producing at minimum average cost. C. rely on chance events. D. differentiate its product and produce at lower average cost than competitors. E. block entry of new firms with government-enforced patents
How might a monopolistically competitive firm continually earn economic profit greater than zero? To earn economic profit greater than zero, a monopolistically competitive firm must A. be the first firm to enter a market to obtain first-mover advantages. B. eliminate excess capacity by producing at minimum average cost. C. rely on chance events. D. differentiate its product and produce at lower average cost than competitors. E. block entry of new firms with government-enforced patents
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 4QFR
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How might a monopolistically competitive firm continually earn economic profit greater than zero?
To earn economic profit greater than zero, a monopolistically competitive firm must
A.
be the first firm to enter a market to obtain first-mover advantages.
B.
eliminate excess capacity by producing at minimum average cost.
C.
rely on chance events.
D.
differentiate its product and produce at lower average cost than competitors.
E.
block entry of new firms with government-enforced
patents.
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