If a Typical Monopolistically Competitive Firm Is Making Short-Run Losses

question 177

Multiple Choice

If a typical monopolistically competitive firm is making short-run losses, then

• A)other more competitive firms will enter the market.
• B)as some firms leave, the remaining firms will experience an increase in the demand for their products.
• C)as some firms leave, the demand for the products of the remaining firms will become more elastic.
• D)the industry will eventually cease to exist.

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Definitions:

Bioaccumulation

The concentration of a chemical pollutant in the tissues of an organism rises over the course of the organism’s lifetime.

Greenhouse Effect

Warming of Earth’s lower atmosphere and surface as a result of heat trapped by greenhouse gases.

Primary Production

The production of organic compounds from atmospheric or aquatic carbon dioxide, principally through the process of photosynthesis or chemosynthesis.