Figure 16-7 The Lines in the Figures Below Illustrate the Potential Effect

question 123

Multiple Choice

Figure 16-7
The lines in the figures below illustrate the potential effect of entry and exit in a monopolistically competitive market on either the demand curve or the marginal cost curve of existing firms.

-Refer to Figure 16-7.Which of the diagrams illustrates the impact of some existing firms leaving the market?

• A) panel a
• B) panel b
• C) panel c
• D) panel d

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Definitions:

Rewards

Benefits, either material or symbolic, given in recognition of one’s effort, achievement, or service.

Moods

Emotional states that can influence perceptions, decision-making, and interpersonal interactions.

Diffuse

Spread out over a large area; not concentrated or focused.

Procedural Fairness

Refers to the perceived fairness of the processes used to make decisions within organizations.