If a Firm in a Monopolistically Competitive Market Has a Demand

question 133

Multiple Choice

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

• A) the firm raises its price.
• B) the firm lowers its price.
• C) firms stop entering the market.
• D) firms stop leaving the market.

---

Definitions:

Teletype Machines

Early communication devices used to send typed messages over long distances through telecommunication lines.

Dividend Yield

A financial ratio that indicates how much a company pays out in dividends each year relative to its share price, often used by investors to gauge the income a company's stock will generate.

Dividend

A portion of a company's earnings that is distributed to shareholders, usually as cash or additional shares, as a reward for their investment in the company's equity.