Figure 16-1

question 213

Multiple Choice

Figure 16-1. The figure is drawn for a monopolistically competitive firm.

-Refer to Figure 16-1.If the ATC=20 at the profit-maximizing level of output,which of the following will occur in the long run in this industry?

• A) Firms will exit this industry.
• B) Firms will enter this industry.
• C) This firm will continue to earn positive economic profits.
• D) This firm will incur losses.

---

Definitions:

Marketing Mix

The combination of factors that a company can control to influence consumer's purchasing decisions, traditionally identified as product, price, place, and promotion.

Marketing Mix

A set of marketing tools that a firm uses to pursue its marketing objectives in the target market, traditionally identified as product, price, place, and promotion.

Four Ps

Stands for Product, Price, Place, and Promotion, which are the core elements involved in marketing a product or service.

Marketing Mix

A blend of marketing variables, typically known as the 4Ps (Product, Price, Place, Promotion), used by businesses to achieve their marketing objectives and satisfy customer needs.