Competition from substitute goods is more of a threat when switching costs are high

The economic analysis of monopolistic competition shows that market forces eliminate profits in the long run. However, it is possible for a firm to continue to earn economic profits if the firm

A) adopts new technologies that enable it to lower its cost of production. B) expands its marketing budget. C) reduces its price to expand its market. D) expands its product offerings to appeal to a wider range of consumers.

List and explain the four key assumptions in the theory of public choice

What will be an ideal response?