Long-Run Profit Earned by a Monopolistically Competitive Firm Is Driven

question 566

Multiple Choice

Long-run profit earned by a monopolistically competitive firm is driven to the competitive level due to a(n)

• A)change in the technology that the firm utilizes.
• B)shift of its demand curve.
• C)shift of its supply curve.
• D)increase in the firm's average cost of production.

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Definitions:

Obligated

Required by a legal or moral duty to do something or responsible for an action.

Overdue

Overdue signifies being past the time or date by which a task, obligation, or payment was due to be completed or made.

Principal

In finance, the original sum of money borrowed or invested, excluding any interest or dividends. In law, the primary party who authorizes another (the agent) to act on their behalf.

Installments

Payments divided over a period of time for a debt or purchase, rather than paying the total amount upfront.