In monopolistic competition if there is profit, there is:

a. a signal for new firms to enter.
b. a motive for existing firms to increase prices.
c. proof that advertising works.
d. a motive for existing firms to decrease prices.
e. product differentiation.

a

Economics

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Water is cheap and diamonds are expensive because water has a ________, and diamonds have a ________

A) low total utility; high total utility B) low marginal utility; high marginal utility C) high marginal utility; low marginal utility D) low marginal utility and a low total utility; high marginal utility and a high total utility

Economics

If the price of a product is above equilibrium, what forces it down?

What will be an ideal response?

Economics