Figure 16-11 -Refer to Figure 16-11. the Graph Depicts a Monopolistically Competitive

question 513

Multiple Choice

Figure 16-11
-Refer to Figure 16-11. The graph depicts a monopolistically competitive firm in the short run. Which of the following explanations best describes the long run adjustment?

• A)More firms will enter this market and each firm will have a smaller share of the total market demand, shifting this firm's demand curve to the left.
• B)More firms will enter this market and each firm will have a larger share of the total market demand, shifting this firm's demand to the right.
• C)Firms will exit this market and each firm will have a smaller share of the total market demand, shifting this firm's demand to the left.
• D)Firms will exit this market and each firm will have a larger share of the total market demand, shifting this firm's demand to the right.

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Definitions:

Rules At Work

Guidelines or principles established within a workplace to govern behavior and procedures.

Sensitivity

The quality of being responsive or susceptible to external conditions or stimuli.

Threatening Upward Comparison

It involves comparing oneself to others who are perceived to be better in some way, which can result in feelings of threat or inferiority.

Interpersonal Concern

The consideration and awareness of the feelings, needs, and well-being of others in social interactions or relationships.