Author Question: In a monopolistically competitive industry A) firms can make an economic profit in the long run ... (Read 89 times)

azncindy619 · **on:** Jun 29, 2018

In a monopolistically competitive industry

A) firms can make an economic profit in the long run because of barriers to entry.
B) the firms can never make an economic profit.
C) if firms are making an economic profit, new firms enter the industry.
D) firms can make an economic profit in the long run because of product differentiation.

Question 2

When the government prohibits certain kinds of market behavior such as monopoly and monopolistic practices it generally does so through

A) regulatory agencies such as the Interstate Commerce Commission or the Federal Communications Commission.
B) antitrust law.
C) the police powers of the states.
D) use of the capture theory of regulation.