If Entry into a Monopolistically Competitive Industry Occurs Because of Positive

question 39

Multiple Choice

If entry into a monopolistically competitive industry occurs because of positive profits earned by the existing firms, the

• A) industry demand curve will shift to the right.
• B) demand curve for each existing firm will shift to the left.
• C) demand curves for the existing firms will remain unchanged.
• D) demand curve for each existing firm will shift to the right.
• E) industry demand curve will shift to the left.

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Definitions:

Brothel

A business establishment where people can engage in sexual activities with prostitutes.

Adolescent Girl

A female in the transition stage from childhood to adult, typically between the ages of 13 and 19.

Prostitution

involves engaging in sexual activity in exchange for payment or other benefits.

Davis's Functional Theory

A sociological perspective suggesting that every aspect of a society serves a function and is necessary for the survival of that society.