If the Firm in the Graph Below Represents the Typical

question 86

Multiple Choice

If the firm in the graph below represents the typical firm in a monopolistically competitive industry,what would be most likely to occur?

• A) New firms would be likely to enter this industry.
• B) Existing firms would be likely to exit this industry.
• C) Firms would neither enter nor exit this industry.
• D) New firms would like to enter but since there are substantial barriers to entry they cannot do so.

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Definitions:

Mislead

To provide false or misleading information that causes someone to form an incorrect belief or conclusion.

Statute of Limitations

A regulation establishing the longest period after an occurrence within which legal actions must be started.

Malpractice

Failure by a professional person, such as a doctor or lawyer, to perform his or her duties competently, resulting in harm to a client or patient.

Metal Fabrication

The process of building machines and structures from raw metal materials, including cutting, bending, and assembling processes.