The Graph Shown Displays the Cost and Revenue Curves Associated

question 33

Multiple Choice

The graph shown displays the cost and revenue curves associated with a monopolistically competitive firm in the short run. In the long run we can expect that:

• A)firms will enter the market.
• B)firms will exit the market.
• C)price will increase.
• D)profits will increase.

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Definitions:

Merchandise Balance

reflects the difference between a country's exports and imports of physical goods, excluding services.

Trade

The exchange of goods and services between parties, which can occur within a country or internationally, driven by the principle of comparative advantage.

1960s

A decade known for significant cultural, political, and socio-economic changes worldwide.

1970s

A decade from 1970 to 1979 characterized by significant political, social, and economic changes worldwide.