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Author Question: What causes new firms to enter into a monopolistically competitive market structure? What will be ... (Read 156 times)

123654777

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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

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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


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