If a Firm's Demand Curve in a Monopolistically Competitive Market

question 46

Multiple Choice

If a firm's demand curve in a monopolistically competitive market is shifting left:

• A) competition is likely entering with similar products.
• B) firms must be exiting the industry.
• C) economic profits must be increasing.
• D) None of these statements is true.

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Definitions:

Closed System

A system that does not interact with its environment and does not exchange matter or energy with the outside.

Disinfectant

A chemical substance used to eliminate or inhibit the growth of harmful microorganisms.

Prefix

A syllable or word placed at the beginning of another word to alter its meaning.

Dis-

A prefix used to denote negation, removal, or expulsion.