Author Question: The most important factor in determining the long-run profit potential in monopolistic competition ... (Read 26 times)

V@ndy87 · **on:** Jul 1, 2018

The most important factor in determining the long-run profit potential in monopolistic competition is

A) free entry and exit.
B) the elasticity of the market demand curve.
C) the elasticity of the firm's demand curve.
D) the reaction of rival firms to a change in price.

Question 2

Refer to Table 5.1. A risk-neutral individual making a decision solely on the basis of the above information would choose to major in

A) accounting.
B) economics.
C) English.
D) political science.
E) mathematics.