When New Firms Are Encouraged to Enter a Monopolistically Competitive

question 35

Multiple Choice

When new firms are encouraged to enter a monopolistically competitive market,

• A)some existing firms must be earning economic profits.
• B)they do so because there is insufficient product differentiation.
• C)the demand curve facing an existing firm shifts to the right.
• D)the marginal cost curve facing an existing firm shifts downwards.

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Definitions:

Lateral Hypothalamus

A region of the hypothalamus in the brain known to control hunger and thirst mechanisms.

Psychological States

The mental conditions that characterize the functioning of an individual's mind at any given time.

Physiological States

Various conditions or statuses of the body's internal processes, often influenced by internal and external factors.

Drives

Internal motivational states that prompt organisms to fulfill basic needs, such as hunger, thirst, or the drive for social connection.