The Diagram Below Shows Demand and Cost Curves for a Monopolistically

question 52

Multiple Choice

The diagram below shows demand and cost curves for a monopolistically competitive firm.
FIGURE 11- 3
-The demand curve facing a monopolistically competitive firm is quite elastic because

• A)of the possibility of entry of new firms.
• B)there are many close substitutes to the good the firm is producing.
• C)the industry is producing a homogeneous product.
• D)firms are not behaving strategically.
• E)goods that are complements to the good the firm is producing also have elastic demand curves.

---

Definitions:

Antibacterial Soap

A type of soap containing chemical ingredients intended to kill or inhibit the growth of bacteria on the skin.

Alcohol-based Rub

A disinfectant preparation for hands that contains alcohol, used to prevent infection by killing bacteria and viruses.

Medical Asepsis

Practices aimed at reducing the number and transmission of pathogens to prevent infections, often through sterilization and disinfection methods.

Skin Protectant

A substance applied to the skin to prevent irritation, damage from external factors, or to aid in healing, offering a barrier of protection.