If monopolistic competitors must expect a process of entry and exit like perfectly competitive firms, they will be unable to earn higher-than-normal profits in the long run.
<h3>What is a monopolistic competition?</h3>
A monopolistic competition is an industry characterised by many sellers of differentiated goods and services. A monopolistic competition has characteristics of both a monopoly and a perfect competition. A monopolistic competition sets the price for its goods and services. A monopolistic competition makes economic profit in the long run. An example of monopolistic competition are restaurants
A perfect competition is an industry characterized by many buyers and sellers of identical goods and services. Market prices are set by the forces of demand and supply. In the long run, firms earn zero economic profit due to no barriers to the entry and exit of firms.
Here are the options:
A. they will be unable to earn higher-than-normal profits in the short run. O B. they will wish to cooperate to make decisions about what price to charge.
OC. they will wish to cooperate to make decisions about what quantity to produce.
O D. they will be unable to earn higher-than-normal profits in the long run.
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Answer:
government corporation
Explanation:
A government corporation is a government-owned firm that operates with the same integrity as a private company, except that the owner is government. Every government company is chartered by legislative act. Government corporations are typically created in markets where there is a natural monopoly, they are significant to the country's infrastructure, natural resources, and general public interest.
Answer:
The correct answer to the following question is D) interest rates would be increased by the government when there is almost full employment in the economy.
Explanation:
When in the economy, business are producing close to productivity and in the nation there is almost full employment , then it can be said that the economy is booming . Which means there is good amount of money supply in the economy and people are spending robustly and that means the demand is high , which ultimately tells that the prices of goods and services are high.
So to cut the prices, government will increase the interest rate which will lead to the increase in cost of borrowing, and that will cause decrease in money supply and demand will ultimately fall, which leads to decrease in prices of goods and services.
Answer:
I think so buh I’d advice u to make it its correct
