Use the Following to Answer Question

question 52

Multiple Choice

Use the following to answer question:
Figure: Monopolistic Competition V
-(Figure: Monopolistic Competition V) Use Figure: Monopolistic Competition V.The figure illustrates a firm in the _____;in the _____,the demand and marginal revenue curves will shift to the _____.

• A)short run;long run;right
• B)long run;short run;left
• C)short run;long run;left
• D)long run;short run;right

---

Definitions:

Variable Cost

Variable Cost refers to costs that change in proportion to the level of goods or services that a business produces.

Sales Commissions

Sales commissions are payments made to salespersons for selling products or services, typically a percentage of the sale price.

Chief Financial Officer

A senior executive responsible for managing the financial actions of a company.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in revenues, indicating the extent to which a firm can increase profits by increasing sales.