Multiple Choice QuestionWhat will happen to a monopolistically competitive firm in the long run?Multiple choice question.It will become a monopoly.It will fail to cover both implicit and explicit costs.It will only break even.It will be forced to leave a profitable industry.

Multiple Choice QuestionEntry into monopolistically competitive industries isMultiple choice question.difficult compared to oligopoly.easy compared to pure competition.difficult compared to pure monopoly.easy compared to oligopoly.

Multiple Choice QuestionIn monopolistically competitive industriesMultiple choice question.price fixing is unlikely because there is a small number of firms.competition is unlikely because there is a large number of firms.restricting output is unlikely because there is a small number of firms.competition is unlikely because there is a small number of firms.collusion is unlikely because there is a large number of firms.

Multiple Choice QuestionA(n) Blank______ is able to maintain an economic profit in the long run because there are no new entrants to increase supply, drive down price, and eliminate economic profit.Multiple choice question.oligopolistic firmmonopolistically competitive firmperfectly competitive firmmonopoly

Multiple Choice QuestionDemand for monopolistically competitive firms is Blank______.Multiple choice question.more inelastic than demand for pure monopolies due to the presence of rival firmsmore elastic than demand for firms in pure competition due to product homogeneityless elastic than demand for pure monopolies due to competitors producing substitutable goodsless elastic than demand for firms in pure competition due to fewer rivals and relative product differentiation

Multiple Choice QuestionA major trade-off that occurs in monopolistically competitive industries is that, as product differentiation increases,Multiple choice question.allocative efficiency also increases.productive efficiency also increases.consumer choice decreases.excess capacity also increases.