In the short-run, the monopolistically competitive firm will experience: Multiple Choice O O O economic profits losses, but in the long-run only an economic profit. a normal profit, but in the long-run only an economic profit. economic profits and losses, but in the long-run only a normal profit. an economic profit, and also one in the long-run.

In the short-run, the monopolistically competitive firm will experience: Multiple Choice O O O economic profits losses, but in the long-run only an economic profit. a normal profit, but in the long-run only an economic profit. economic profits and losses, but in the long-run only a normal profit. an economic profit, and also one in the long-run.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopolistic Competition And Oligoply

Section: Chapter Questions

Problem 3SQ

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Similar questions

A monopolistically competitive firm earning profits in the short run will find the demand for its product becoming more elastic in the long run because: 1 more substitutes are available because new rivals have entered the market. 2 the price of the product relative to buyers' incomes has increased. 3 consumers have tired of the firm's product. 4 consumers incomes have fallen.
In monopolistically competitive markets, zero economic profit is associated with: Select one: a. inefficient output and excess capacity. b. efficient output and no excess capacity. c. competitive equilibrium because other firms entered the market. d. no deadweight loss e. minimization of average total cost.
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.
true or false Consumers are generally worse off under competitive markets than under monopolistic markets