New firms are able to enter monopolistically competitive markets because there are low barriers to entry

Which of the following would be considered a transaction deposit?

A) passbook savings account B) checking account C) 401(k) retirement account D) credit card account

If a typical firm in a perfectly competitive industry is earning profits, then

A) new firms will enter in the long run causing market supply to increase, market price to fall, and profits to decrease. B) all firms will continue to earn profits. C) the number of firms in the industry will remain constant in the long run. D) new firms will enter in the long run causing market supply to decrease, market price to rise, and profits to increase.