Asked by
Vanessa David
on Nov 05, 2024
Verified
Firms will ________ a monopolistically competitive market until ________ are eliminated.
A) enter; losses
B) enter; profits
C) exit; short-run profits
D) exit; long-run profits
Enter Market
The act of beginning to offer goods or services in a particular marketplace.
Exit Market
The act of leaving a market or discontinuing the production and sale of a product or service, often due to unprofitability or strategic realignment.
Profits Eliminated
A situation where competition or other factors reduce a firm's profits to zero over time.
- Investigate the processes of entering and leaving monopolistically competitive markets and their effects on profitability.
- Examine the effect of economic gains on the dynamics of market structure.
Verified Answer
LO
Learning Objectives
- Investigate the processes of entering and leaving monopolistically competitive markets and their effects on profitability.
- Examine the effect of economic gains on the dynamics of market structure.