Use the following to answer questions:
Figure: Monopolistic Competition 
-(Figure: Monopolistic Competition) Refer to the figure. Suppose the figure represents a firm that operates in a monopolistically competitive market. In the long run you would expect:
Definitions:
Equilibrium Price
The price at which the quantity of goods supplied equals the quantity demanded.
Tennis Balls
Small, usually yellow, hollow rubber balls covered in a fibrous felt, used in the game of tennis.
Tennis Racquets
Sporting equipment consisting of a handled frame with an open hoop across which a network of strings is stretched, used to hit a tennis ball.
Demand Schedule
A table that shows the quantity of a good or service that consumers are willing to buy at each price point.
Q64: In the previous chapter you learned
Q65: The threat of new firms easily entering
Q126: If job A and job B are
Q146: A group of suppliers who tries to
Q150: Which is NOT a good example of
Q151: Is there an incentive for businesses to
Q195: It is difficult to get people to
Q211: Loyalty programs increase monopoly power making the
Q249: Suppose that a firm needs 20 workers,
Q253: As more workers are hired, the marginal