Which of the Following Would Cause the Demand Curve of a Monopolistically

question 103

Multiple Choice

Which of the following would cause the demand curve of a monopolistically competitive firm to shift to the right? Negative economic profits are being earned. Firms are leaving the market. The selling price is less than the firm's average total cost.

• A)I and II only
• B)II only
• C)I and III only
• D)I, II, and III

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Definitions:

Diffusion

Spontaneous spreading of molecules or atoms through a fluid or gas.

Indigestible Substances

Materials that cannot be broken down and absorbed by the digestive enzymes and system of an organism, often passing through the system largely unchanged.

Entropy

Measure of how much the energy of a system is dispersed.

Energy Conversion

The process of changing one form of energy into another, such as solar energy into electricity.