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Monopolistically Competitive Firms Have an Incentive To

Question 84
Multiple Choice

Monopolistically competitive firms have an incentive to: A) engage in tactics for bringing in more customers. B) advertise. C) engage in brand promotion. D) All of these statements are true.

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Q 85
Which of the following is not a characteristic of monopolistically competitive firms in the long run: A) firms earns zero profits B) each firm maximizes profits. C) firms charge a price above marginal cost. D) there is no deadweight loss.
Q 86
Monopolistically competitive firms can earn profits in the long run by: A) price discriminating. B) continually innovating to differentiate their product. C) further minimizing their costs. D) monopolistically competitive firms only earn zero profits in the long run.
Q 87
Economists usually believe that: A) competition encourages innovation. B) innovation encourages competition. C) innovation leads to market power and should be regulated. D) market power leads to innovation.
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