Use the Following to Answer Questions

question 66

Multiple Choice

Use the following to answer questions:
Scenario: Monopolistically Competitive Firm
For a monopolistically competitive firm, Q = 160 - P; MC = 20 + 2Q; and TC = 20Q + Q² + 20.
-(Scenario: Monopolistically Competitive Firm) Given the information in the scenario Monopolistically Competitive Firm, in the long run, this firm can expect that:

• A) its demand curve will become more elastic as it dominates the market more.
• B) its economic profits will decrease to zero.
• C) its losses will fall and eventually become a positive economic profit.
• D) other firms will not enter or exit the industry.

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Definitions:

Fetal Alcohol Effects

A range of effects that can occur in an individual whose mother drank alcohol during pregnancy, including physical, mental, behavioral, and/or learning disabilities.

Alcohol

A psychoactive substance that is commonly consumed in beverages and can alter mood and behavior, presenting potential risks and benefits to health.

Fetal Alcohol Syndrome

Fetal alcohol syndrome is a severe condition resulting from alcohol exposure during pregnancy, leading to physical, cognitive, and behavioral impairments in the child.

FAE

Fundamental Attribution Error (FAE) is the tendency to attribute others' behavior to their character while underestimating the influence of external factors.