« previous next »

Author Question: What causes new firms to enter into a monopolistically competitive market structure? What will be ... (Read 161 times)

123654777

  • Hero Member
  • *****
  • Posts: 585
on: Jun 29, 2018
What causes new firms to enter into a monopolistically competitive market structure?
 
  What will be an ideal response?

Question 2

In the short run, when a firm is about to begin production it pays only:
 
  A) variable costs.
  B) opportunity costs.
  C) sunk costs.
  D) fixed costs.


jsm54321

  • Sr. Member
  • ****
  • Posts: 328
Reply #1 on: Jun 29, 2018
Answer to Question 1

Positive economic profits earned by the existing firms in the short run attract new firms to enter a monopolistically competitive market.

Answer to Question 2

D


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

When blood is exposed to air, it clots. Heparin allows the blood to come in direct contact with air without clotting.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

The structure of the rib cage. The structure of the rib cage.
Retrovirus Structure Retrovirus Structure
J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo J. P. Morgan, the financial genius, staved off ruinous competition among steel firms by combining mo
Structure of complex II (succinate dehydrogenase) Structure of complex II (succinate dehydrogenase)
Axons of sympathetic preganglionic neurons enter sympathetic trunk ganglia Axons of sympathetic preganglionic neurons enter sympathetic trunk ganglia
Structure of the human adrenal gland Structure of the human adrenal gland
Video: What are Strong & Weak Acids and How they're different?

For a complete list of videos, visit our video library