The Diagram Below Shows Demand and Cost Curves for a Monopolistically

question 12

Multiple Choice

The diagram below shows demand and cost curves for a monopolistically competitive firm. FIGURE 11- 3
-Refer to Figure 11- 3. If an increase in industry demand led to an outward shift in each firm's demand curve, the typical firm would

• A) be making losses and some firms would exit the industry in the long run.
• B) increase costs in order to break even at PL and QL in the long run.
• C) be making profits and new firms would enter the industry in the long run.
• D) would expand its output in the long run.
• E) decrease costs in order to break even at PL and QL in the long run.

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Definitions:

GABA

A major inhibitory neurotransmitter in the brain involved in reducing neuronal excitability throughout the nervous system.

Voluntary Movements

Movements that are consciously controlled by the brain, involving motor planning and execution.

Acetylcholine

A neurotransmitter in the nervous system involved in muscle activation, memory, and learning.

Muscles

Tissues in the body that have the ability to contract, enabling movement of the body and its parts.