Suppose That Firms in a Monopolistically Competitive Industry Are Earning

question 167

Multiple Choice

Suppose that firms in a monopolistically competitive industry are earning short-run economic profits.In the long run, the demand curve facing each individual firm can be expected to

• A)shift to the left and become flatter
• B)shift to the left and become steeper
• C)shift to the right and become flatter
• D)shift to the right and become steeper
• E)remain constant

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Definitions:

Hypothesis

Testable explanation of a natural phenomenon.

Natural Phenomenon

A naturally occurring event or occurrence that can be observed in the physical world, not caused by humans.

Conclusive Description

Definitive or decisive description that leaves no room for doubt or questions.

Nutrients

Materials that supply the necessary nutrients for the development and sustenance of living organisms.