For a firm in monopolistic competition, innovation and product development are
A) senseless because economic profit is always zero in the long run.
B) necessary in order to have a chance of earning at least a short-run economic profit.
C) inconsequential because each firm produces a different product.
D) necessary to allow new firms to enter.
E) uncommon because other firms already produce similar products.
B
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Technological progress should lead to
A) an outward (rightward) shift in the investment function. B) an unchanged investment function. C) a downward movement of the investment function. D) less saving.
Because Jess didn't have the time to understand the issue, she did not vote on the amendment about clean energy. Jess's behavior demonstrates the economic principle of ________
A) diminishing marginal utility B) voting preferences C) rational ignorance D) minimum differentiation