Table 16-1 a Monopolistically Competitive Firm Faces the Following Demand Curve for Curve

question 174

Multiple Choice

Table 16-1
A monopolistically competitive firm faces the following demand curve for its product:

-Refer to Table 16-1.The firm has total fixed costs of $40 and a constant marginal cost of $2 per unit.Which outcome will result

• A)Firms will exit this market.
• B)Firms will enter this market.
• C)This market is in long-run equilibrium.
• D)This firm is operating at efficient scale.

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Definitions:

Diminishing Marginal Returns to Labor

A principle stating that if the amount of a variable resource (such as labor) increases while other factors are fixed, the additional output generated by the additional input will eventually decrease.

Productivity Growth Slowdown

A period characterized by a decrease in the rate at which the productivity of labor increases over time.

Environmental Regulations

Laws and rules enforced by governments to regulate activities that impact the environment, aimed at reducing pollution and preserving natural resources.

Workplace Safety Regulations

Laws and guidelines designed to ensure the physical safety and health of employees within the workplace.