Refer to the Graph Shown of a Monopolistically Competitive Firm

question 124

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:

Wages

Compensation or earnings paid to an employee by an employer based on the hours worked or the output produced.

Appeal to Force

A logical fallacy where a conclusion is supported by a threat or use of force, rather than by evidence or reasoning.

Business Meeting

A gathering of people within an organization to discuss and make decisions on matters of mutual interest or concern.

Argument

An explanation or series of explanations provided to justify a concept, action, or hypothesis.