If a Firm in a Monopolistically Competitive Market Has a Demand

question 11

Multiple Choice

If a firm in a monopolistically competitive market has a demand curve shifting to the right,it is likely that:

• A) positive economic profits are being earned.
• B) firms are entering the market.
• C) the selling price is less than the average total cost of the firm.
• D) All of these statements are true.

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Definitions:

Total Individually

Calculating or assessing each item on its own, then summing them up for a total figure, often used in accounting or inventory management.

Sales Journal

A dedicated bookkeeping ledger designed for noting every credit sales transaction a business conducts.

Purchases Journal

A ledger in accounting used specifically to record all purchase transactions of a company, especially those made on credit.

Cash Payments Journal

A business ledger documenting every cash disbursement, encompassing expenditures, acquisitions of assets, and repayment of liabilities.