Figure 13-18 -Refer to Figure 13-18. Which of the Following Statements Is

question 180

Multiple Choice

Figure 13-18
-Refer to Figure 13-18. Which of the following statements is true?

• A) D_a represents the long-run demand curve facing a monopolistic competitor in a constant-cost industry while D_b depicts the demand curve in the short run.
• B) D_a represents the long-run demand curve facing a monopolistic competitor in a constant-cost industry while D_b depicts the long-run demand curve in an increasing-cost industry.
• C) D_a represents the long-run demand curve facing a perfect competitor while D_b depicts the long-run demand curve facing a monopolistic competitor.
• D) D_a represents the long-run supply curve in a perfectly competitive, constant-cost industry while D_b depicts the long-run demand curve facing a monopolistic competitor in a decreasing-cost industry.

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Definitions:

Barrier to Entry

Factors that make it difficult for new firms to enter an industry, including high startup costs, stringent regulations, and established brand loyalty.

Homogeneous Product

A good or service that is considered identical or uniform across different sellers, making it difficult to distinguish based on attributes other than price.

Gasoline

A volatile, flammable liquid derived from petroleum, primarily used as fuel in internal combustion engines.

Copper

A reddish-brown metal that is highly conductive to electricity and heat, extensively used in electrical wiring and plumbing.