Figure 15-4 Figure 15-4 Shows the Demand and Cost Curves for a and Cost

question 7

Multiple Choice

Figure 15-4

Figure 15-4 shows the demand and cost curves for a monopolist.
-Refer to Figure 15-4.What is likely to happen to this monopoly in the long run if costs and demand stay the same?

• A)New firms will enter the market to eliminate its profits.
• B)It will expand its output to take advantage of economies of scale so as to further increase its profit.
• C)As long as there are entry barriers, this firm will continue to enjoy economic profits.
• D)It will be regulated by the government because of its excess profits.

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Definitions:

Motivational Research

A type of marketing research that attempts to understand consumers' underlying emotions and attitudes that drive purchasing behaviors.

Chemical Stimulation

The use of chemical agents to activate or inhibit specific physiological responses in living organisms.

Motivation Component

The elements that drive and direct behavior towards achieving personal goals or fulfilling needs.

Activation

This term refers to the process of stimulating activity within the brain or body, leading to increased responsiveness or action.