Answer the Question on the Basis of the Following Short

question 200

Multiple Choice

Answer the question on the basis of the following short run demand and cost data for a specific firm. In the long run, the number of firms in this monopolistic competitive industry will most likely

• A)decrease.
• B)increase.
• C)stay the same.
• D)The answer cannot be determined from the given data.

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Definitions:

Zone of Tolerance

The range within which customers are willing to accept variations in service delivery or product quality.

Quality Gap

Quality Gap is the difference between customer expectations for service quality and their perceptions of the actual service received.

Instrumental Support

Practical or material assistance provided to someone in need, such as financial help or resources.

Delivery Gap

The discrepancy between a company's service quality specifications and the actual service delivered to customers.