In a situation of Monopolistic Competition, all of the following are true except: Barriers to entry can exist that include legal restrictions or control of an essential resource. Positive profits induce the entry of other firms into the market. O Movement to long-run equilibrium can be lengthy and allow for firms to earn positive profits for an extended period of time. Both the entry of firms into the market and the exit of firms from the market affect the individual demand curves of remaining firms.

In a situation of Monopolistic Competition, all of the following are true except: Barriers to entry can exist that include legal restrictions or control of an essential resource. Positive profits induce the entry of other firms into the market. O Movement to long-run equilibrium can be lengthy and allow for firms to earn positive profits for an extended period of time. Both the entry of firms into the market and the exit of firms from the market affect the individual demand curves of remaining firms.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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