In monopolistically competitive markets, free entry and exit suggests that
A: the market structure will eventually be characterized by perfect competition in the long run.
B: all firms earn zero economic profits in the long run.
C: some firms will be able to earn economic profits in the long run.
D: some firms will be forced to incur economic losses in the long run.
A: the market structure will eventually be characterized by perfect competition in the long run.
B: all firms earn zero economic profits in the long run.
C: some firms will be able to earn economic profits in the long run.
D: some firms will be forced to incur economic losses in the long run.
举一反三
- "Diseconomies of scale" occur in ( ) A: the long run, but not the short run. B: the short run, but not the long run. C: both the short run and the long run. D: neither the short run nor the long run.
- Because economic profits are eliminated in the long run in monopolistic competition, to make an economic profit, firms continuously develop and market new products。(<br/>)
- Monetary policy affects employment A: only in the long run. B: only in the short run. C: in both the long run and the short run. D: in neither the long run nor the short run.
- Which of the following is accurate? A: Monetary policy is neutral in both the short run and the long run. B: Though monetary policy is neutral in the long run, it may have effects on real variables in the short run. C: Monetary policy has profound effects on real variables in both the short run and the long run. D: Monetary policy has profound effects on real variables in the long run, but is neutral in the short run.
- Which of the following is least likely a feature that monopolistic competition and perfect competition have in common A: Output occurs where MR=MC. B: Zero economic profits in the long run. C: Extensive advertising to differentiate products.