Use the Figure Below to Answer the Following Questions

question 7

Multiple Choice

Use the figure below to answer the following questions.

Figure 14.2.4
-Refer to Figure 14.2.4. The figure represents a monopolistically competitive firm in short-run equilibrium. In the long run,

• A)new firms enter, and each existing firm's demand curve shifts leftward.
• B)new firms enter, and each existing firm's demand curve shifts rightward.
• C)existing firms exit, and each remaining firm's demand curve shifts leftward.
• D)existing firms exit, and each remaining firm's demand curve shifts rightward.
• E)the equilibrium is the same as in the short run.

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Definitions:

Underlying Differences

Fundamental or basic distinctions that are not immediately obvious but form the basis of variance between entities or issues.

Mutual Benefit

A principle or arrangement in which all parties involved gain advantages or profits.

Recognition Needs

Recognition needs refer to the human desire for appreciation, acknowledgment, and validation of their achievements and skills.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, which outlines a five-tier model of human needs, from basic physiological needs to self-actualization, motivating behavior.