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:

Enolate Ion

A negatively charged ion formed by the deprotonation of an alpha carbon to a carbonyl group in an aldehyde or ketone.

Acetophenone

Acetophenone is an aromatic ketone, known as the simplest aromatic ketone, used as a precursor in the synthesis of fragrances and resins.

β-diketone

A type of organic compound containing two keto (carbonyl) groups separated by a carbon atom, often depicted as RC(=O)CH2C(=O)R'.

Enols

Molecules containing a hydroxyl group attached to a carbon atom that is double-bonded to another carbon atom.