Which of the Following Statements Concerning a Monopolistically Competitive Industry

question 167

Multiple Choice

Which of the following statements concerning a monopolistically competitive industry is correct?

• A)If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the right.
• B)If there are short-run economic profits, firms will enter the industry and the demand curves of existing firms will shift to the right.
• C)If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the left.
• D)If there are short-run economic profits, firms will leave the industry and the demand curves of the remaining firms will shift to the right.

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Definitions:

Natural Selection

The biologically based principle that environmental pressures allow certain beneficial traits to be passed on to future generations.

Evolution

The biological process by which genetic mutations are selected for, and against, through environmental pressures.

Organic Analogy

A comparison that likens societies to living organisms, suggesting that each part of society functions in harmony for the maintenance of the whole.

Women's Movement

A socio-political movement aimed at achieving gender equality, women's rights, and addressing issues like discrimination and violence against women.