Table 16-7 a Monopolistically Competitive Firm Faces the Following Demand Schedule for Schedule

question 86

Multiple Choice

Table 16-7
A monopolistically competitive firm faces the following demand schedule for its product. In addition, the firm has total fixed costs equal to $10.

-Refer to Table 16-7.If the firm has a constant marginal cost of $5 per unit,which of the following would you expect to occur in the long run in this market?

• A) New firms will enter the market and profits for firms in the market will fall.
• B) New firms will enter the market and profits for firms in the market will rise.
• C) Firms will leave the market and profits for firms that remain in the market will rise.
• D) Firms will leave the market and profits for firms that remain in the market will fall.

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Definitions:

Norms

Socially accepted rules or standards of behavior expected within a group or society.

Social Life

The part of an individual's time that is spent interacting with others, participating in social activities and forming relationships.

Culture

The shared beliefs, customs, arts, institutions, and all other products of human work and thought created by a group of people at a particular time.

Superior Officer

A person who holds a higher rank and typically has authority over others within a hierarchical organization, such as the military or police.