Entry of new firms will occur in a monopolistically competitive industry until
a. marginal cost equals zero
b. marginal revenue equals zero
c. marginal revenue equals marginal cost
d. economic profit equals zero
e. economic profit is negative
D
You might also like to view...
Which statement is most correct about the types of deposits a commercial bank can accept?
A) A commercial bank does not accept deposits but sells shares. B) A commercial bank accepts checking, savings and time deposits. C) A commercial bank accepts savings and time deposits, but not checking deposits. D) A commercial bank can only accept checking deposits from commercial enterprises. E) A commercial bank can accept loan deposits, reserve deposits, and checkable deposits.
Some individuals seek to use government action to make themselves better off at the expense of others. The actions of these individuals
A) are evidence of the voting paradox. B) are examples of fraud; but these individuals usually avoid prosecution because of logrolling and rational ignorance. C) offer proof that Adam Smith's "invisible hand" is not valid. D) are examples of rent seeking.