Refer to the Graph Shown of a Monopolistically Competitive Firm

question 62

Multiple Choice

Refer to the graph shown of a monopolistically competitive firm. The graph shows that:

• A) the industry is in long-run equilibrium.
• B) new firms will enter the industry.
• C) some existing firms will leave the industry.
• D) the price of the product is $90.

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Definitions:

Business Norms

Business norms are the customary rules and standards of conduct that guide business behavior and interactions within specific industries, cultures, or markets.

External Factors

Influences from outside an organization or system that can impact its performance, including economic, social, political, and environmental forces.

Differences Arise

Refers to the emergence of disagreements or conflicts in various contexts, including cultural, political, or economic interactions.

Economic Factor

Refers to the various elements that influence the economy of a country, including inflation, unemployment rates, fiscal policies, and international trade.