Refer to the Graph Shown of a Monopolistically Competitive Firm

question 173

Multiple Choice

Refer to the graph shown of a monopolistically competitive firm. In the long run:

• A) marginal cost will fall for firms that remain as other firms exit the industry.
• B) average total cost will rise for firms that remain as other firms enter the industry.
• C) demand will fall for firms that remain as other firms enter the industry.
• D) demand will rise for firms that remain as other firms exit the industry.

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Definitions:

Masseter

A facial muscle critical for chewing and biting, located at the angle of the jaw.

Plantar Flexes

The movement that increases the angle between the shin and the top of the foot, pointing the toes downward.

Soleus

A muscle in the calf of the leg that flexes the foot to point the toes downward.

Tibialis Anterior

A muscle located in the front of the shin that helps in dorsiflexion and inversion of the foot.