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

question 107

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 20.
-Refer to Table 16-7. If the firm produces its profit-maximizing level of output and there is a constant marginal cost of $7 per unit, which of the following is correct?

• A)This firm is operating at its efficient scale.
• B)This firm should expect its demand curve to shift to the left.
• C)Firms will leave the market and profits for firms that remain in the market will rise.
• D)This firm is in a long-run equilibrium.

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Definitions:

Lattice Structure

The regular, repeated three-dimensional arrangement of atoms, ions, or molecules in a metal or other crystalline solid.

Oxidized

A chemical change in which a substance loses electrons, often associated with the addition of oxygen or the loss of hydrogen.

Chemical Reaction

A process that leads to the transformation of one set of chemical substances to another through the making and breaking of bonds between atoms.

Rust

A type of fungal disease that affects plants, causing reddish-brown spots, or the oxidation of iron and its alloys resulting in reddish-brown flaking coatings.