Use the Following to Answer Question

question 239

Multiple Choice

Use the following to answer question:
Figure: Profit Maximization in Monopolistic Competition
-(Figure: Profit Maximization in Monopolistic Competition) Use Figure: Profit Maximization in Monopolistic Competition.If other firms see economic profits in the industry,they will enter it,and the demand curve for firms already in the industry will shift to the _____;in the long run,this will result in an economic profit _____ zero and a price _____ ATC.

• A)right;equal to;equal to
• B)right;greater than;greater than
• C)left;less than;less than
• D)left;equal to;equal to

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Definitions:

Satisfying Wants

Fulfilling the desires or needs of consumers, often a goal for businesses to meet through the production of goods and services.

Income

A broader term that encompasses money received on a regular basis from work, property, investments, or welfare payments.

Opportunity Costs

The cost of an alternative that must be forgone in order to pursue a certain action; the benefits you could have received by taking an alternative action.

Trade-offs

The concept that in order to gain something, something else must be given up, reflecting the opportunity cost of choices and decisions.