If the Demand Curve for a Firm in a Monopolistically

question 97

Multiple Choice

If the demand curve for a firm in a monopolistically competitive market is shifting to the right, it will only stop shifting when:

• A)the firm is earning zero economic profits.
• B)the firm's price is equal to its average total cost.
• C)other firms have no incentive to exit the market.
• D)All of these are true.

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Definitions:

Ribs

A series of curved bones that form the protective cage around the chest, supporting the upper body and protecting vital organs.

Sternoclavicular Joint

The joint connecting the clavicle (collarbone) to the sternum (breastbone) at the base of the neck.

Manubrium

The broad upper part of the sternum, with which the clavicles and the first two ribs articulate.

Clavicle

A long bone that serves as a strut between the shoulder blade and the sternum or breastbone.