When Some Firms Exit a Monopolistic Competitive Industry, the Demand

question 169

Multiple Choice

When some firms exit a monopolistic competitive industry, the demand curves of the remaining firms in the industry

• A) do not change.
• B) shift to the left.
• C) shift downward.
• D) shift to the right.

---

Definitions:

Period Costs

Costs that are expensed in the period in which they are incurred, not directly tied to the production process.

Factory Overhead Incurred

The total costs associated with the operation of a factory that are not directly tied to a specific product, including utilities, maintenance, and management salaries.

Statement of Cost

A financial report that summarizes the costs associated with producing goods or services, including materials, labor, and overhead.

Finished Goods

Finished goods are products that have completed the manufacturing process but have not yet been sold or distributed to end users.