Asked by

Nicole Mariano
on Dec 08, 2024

verifed

Verified

Firms will ________ a monopolistically competitive market until ________ are eliminated.

A) exit; losses
B) enter; losses
C) exit; short-run profits
D) exit; long-run profits

Monopolistically Competitive

Describes a market structure in which several or many sellers each produce similar, but slightly differentiated products, and each has some control over price.

Short-run Profits

Earnings calculated over a short period during which at least one of a firm's inputs is fixed, focusing on immediate financial return rather than long-term investments.

Long-run Profits

Profits achieved over a longer period, reflecting the sustainability and effectiveness of a business strategy.

  • Comprehend the entry and exit dynamics in monopolistically competitive markets and their impact on profits.
verifed

Verified Answer

KM
Kavya MogaveeraDec 09, 2024
Final Answer:
Get Full Answer