If a Competing Firm Is Able to Overcome an Entry

question 68

Multiple Choice

If a competing firm is able to overcome an entry barrier of a monopolized industry, the demand curve of the single firm already in the industry will

• A) shift to the left.
• B) remain the same in spite of the entry of the other firm.
• C) shift to the right.
• D) shift to the left and become more elastic.
• E) become less elastic.

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Definitions:

Spatially

Relating to, occupying, or having the character of space, often used to describe how objects fit together in space or are organized.

Signposts

cues or markers within a speech or writing that guide the audience through the structure and important points.

Classification

A method of arranging entities in an organized system based on common characteristics or themes.

Partition

The act of dividing something into parts or sections.