If the Demand Curve for a Firm in a Monopolistically

question 2

Multiple Choice

If the demand curve for a firm in a monopolistically competitive market is shifting to the right, it is likely that:

• A)positive economic profits are being earned.
• B)firms are entering the market.
• C)the selling price is less than the firm's average total cost.
• D)All of these will cause the demand curve to shift to the right.

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