Use the Figure Below to Answer the Following Questions

question 107

Multiple Choice

Use the figure below to answer the following questions. Figure 13.2.4
-Refer to Figure 13.2.4.The figure represents a monopolistically competitive firm in short-run equilibrium.In the long run,

• A)new firms enter,and each existing firm's demand curve shifts leftward.
• B)new firms enter,and each existing firm's demand curve shifts rightward.
• C)existing firms exit,and each remaining firm's demand curve shifts leftward.
• D)existing firms exit,and each remaining firm's demand curve shifts rightward.
• E)the equilibrium is the same as in the short run.

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Definitions:

Time Period Assumption

The long life of a company can be reported in shorter time periods, such as months, quarters, and years.

Business Entity

A corporation, partnership, association, or any other legal entity engaged in economic activities, such as selling goods or services.

Quarters

A three-month period on a financial calendar that acts as a basis for reporting earnings and paying dividends.

Operating Income

The profit realized from a business's core operations, excluding deductions for interest and taxes.