What Is the Long-Run Effect on the Demand Curve of a Monopolistically

question 27

Multiple Choice

What is the long-run effect on the demand curve of a monopolistically competitive firm when more firms enter the market?

• A)Demand curve shifts to left.
• B)Demand curve remains the same.
• C)Demand curve shifts to right.
• D)Demand curve become flatter.

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Definitions:

Gallons

Gallons are a measure of volume primarily used in the United States, traditionally used for measuring liquids like water, gasoline, and milk.

Pounds

A unit of weight in the British imperial and United States customary systems, equal to 0.453592 kilograms.

Grams

In the metric system, it's the unit of mass equivalent to 0.001 kilograms.

Metric Tons

A unit of mass equal to 1,000 kilograms or approximately 2,204.6 pounds, commonly used in measuring weight in many countries outside the United States.