Suppose That Monopolistically Competitive Firms in a Certain Market Are

question 470

Multiple Choice

Suppose that monopolistically competitive firms in a certain market are earning positive profits. In the transition from this initial situation to a long-run equilibrium,

• A)the number of firms in the market decreases.
• B)each existing firm experiences a decrease in demand for its product.
• C)each existing firm experiences a rightward shift of its marginal revenue curve.
• D)each existing firm experiences an upward shift in its average total cost curve.

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Definitions:

Hydraulic Press

A device using hydraulic power to generate a compressive force, widely used in metal forming, moulding, and various industrial applications.

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Roll Stability Control system, an active safety feature designed to help prevent vehicle rollover by adjusting engine power and applying brakes to specific wheels.

Chassis Data Bus

A network within a vehicle that allows for the transfer of data between electronic control units and devices.

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A device used to reduce the speed of a vehicle by applying resistance to the driveline, aiding in braking.