Which of the following statements is true about profits in a monopolistically competitive market?
(A) Monopolistically competitive firms are as profitable as monopoly firms.
(B) Profits are rare in monopolistically competitive markets.
(C) Most firms will earn substantial profits from year to year.
(D) Many firms will earn profits in the short term, but they must constantly innovate and compete to earn profits in the long term.
Ans: (D) Many firms will earn profits in the short term, but they must constantly innovate and compete to earn profits in the long term.
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Suppose the banks in the Federal Reserve System have $400 million in transactions accounts and the reserve requirement is 0.10. Ceteris paribus, if the reserve requirement is decreased to 0.05, then excess reserves will increase by:
A. $1 million. B. $20 million. C. $40 million. D. $2 billion.
A time series graph reveals whether there is a ________ , which represents ________
A) trends in two variables; unrelated variables B) relationship between two variables; a trend in a variable C) cross-section relationship; a general tendency for the variables to rise or fall D) trend in a variable; a general tendency for the variable to rise or fall E) relationship between two variables; a cross-section relationship