In the long run, the most helpful action that a monopolistically competitive firm can take to maintain its economic profit i

Question

Question 1

In the long run, the most helpful action that a monopolistically competitive firm can take to maintain its economic profit is to

continue its efforts to differentiate its product.

raise its price.

lower its price.

do nothing, because it will inevitably experience a decline in profits

Question 2

The four-firm concentration ratio

indicates the total profitability among the top four firms in an industry

is an indicator of the degree of monopolistic competition.

indicates the presence and intensity of an oligopoly market.

is used by the government as a basis for anti-trust cases.

Question 3

Which of the following industries is most likely to represent the monopolistic competition market structure?

automobiles

tobacco products

restaurants

farm equipment