-In the Above Figure, What Would Happen to the Monopolistically

question 45

Multiple Choice

-In the above figure, what would happen to the monopolistically competitive industry in the long run?

• A) More producers would enter the market, and the share of the market to this firm would fall, which would cause the demand curve to shift leftward until there is zero economic profit.
• B) More producers would exit the market, and the share of the market to this firm would fall, which would cause the demand curve to shift leftward until there is zero economic profit.
• C) More producers would enter the market, and the share of the market to this firm would rise, which would cause the demand curve to shift rightward until there is zero economic profit.
• D) More producers would enter the market, and the share of the market to this firm would fall, which would cause the demand curve to shift leftward until there is negative economic profit.

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Definitions:

Contributory Negligence

A legal doctrine where if the plaintiff in a negligence case is found to be partly at fault, they may receive reduced or no damages.

Comparative Negligence

A legal doctrine that reduces the amount of damages a plaintiff can recover in a negligence-based claim, based upon the degree to which the plaintiff's own negligence contributed to the cause of their injury.

Wrongful Interference

An unlawful act by one party to disrupt or harm the business relationships or contracts of another party.

Business Relationship

A formal association between companies or individuals involved in professional activities, typically characterized by cooperation and transactions.