Figure: Profit Maximization in Monopolistic Competition (Figure: Profit Maximization

question 78

Multiple Choice

Figure: Profit Maximization in Monopolistic Competition (Figure: Profit Maximization in Monopolistic Competition) Look at the figure Profit Maximization in Monopolistic Competition.If other firms see economic profits in the industry, they will enter it, and the demand curve for firms already in the industry will shift to the ________; in the long run, this will result in an economic profit ________ and a price _.

• A)right; = 0; = ATC .
• B)right; > 0; > ATC .
• C)left; < 0; < ATC.
• D)left; = 0; = ATC

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Definitions:

Elisabeth Kübler-Ross

a psychiatrist known for her pioneering work on the five stages of grief and death.

Anger

A strong feeling of displeasure or hostility aroused by what is perceived as wrong, injustice, or frustration.

Terminally Ill

A state of having a disease that is incurable and expected to lead to death within a relatively short time.

Irritable

A state of having a quick temper or being easily annoyed.