Suppose Some Firms Exit an Industry Characterized by Monopolistic Competition

question 279

Multiple Choice

Suppose some firms exit an industry characterized by monopolistic competition. We would expect the demand curve of a firm already in the industry to

• A)shift to the left.
• B)shift to the right.
• C)become less elastic.
• D)remain the same since entering firms serve other customers in the market.

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Definitions:

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A psychological theory suggesting that people deduce their inner feelings from their behavior when internal cues are weak or ambiguous.

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A community or organization composed of young people, geared towards social, emotional, educational, and sometimes spiritual development.

Integrated Picture

The comprehensive and cohesive understanding or portrayal of a situation or concept, made up of combined elements or factors.