Which of the following is often the result of free entry by other firms into monopolistic competition? Losses increase while profits decrease in the long run. Losses are often magnified in the long run. Profits are often eliminated in the long run. O Profits often increase in the long run.
Which of the following is often the result of free entry by other firms into monopolistic competition? Losses increase while profits decrease in the long run. Losses are often magnified in the long run. Profits are often eliminated in the long run. O Profits often increase in the long run.
Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
Problem 10P
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Pls help with the below homework, pls answer all 3 questions in 5-6 sentences.
Transcribed Image Text:Question 34
Which of the following is often the result of free entry by other firms into monopolistic
competition?
Losses increase while profits decrease in the long run.
Losses are often magnified in the long run.
Profits are often eliminated in the long run.
O Profits often increase in the long run.
Question 35
If total revenue is greater than total costs at q', the firm is generating total economic profits.
True
O False
Question 36
With monopolistic competition, society is willing to pay more for the product than it costs society
to produce it.
O True
O False
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