Suppose That Monopolistically Competitive Firms in a Certain Market Are

question 470

Multiple Choice

Suppose that monopolistically competitive firms in a certain market are earning positive profits. In the transition from this initial situation to a long-run equilibrium,

• A)the number of firms in the market decreases.
• B)each existing firm experiences a decrease in demand for its product.
• C)each existing firm experiences a rightward shift of its marginal revenue curve.
• D)each existing firm experiences an upward shift in its average total cost curve.

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Definitions:

Relative Ethics

The belief that moral standards are influenced by and can only be understood in relation to the specific social, cultural, or individual context.

Legislation

Laws that have been enacted by a governing body or the process of making or enacting laws.

Divine Command Theory

A theory suggesting that morality is determined by God's commands, and what is morally right is what God has decreed.

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