Figure 16-8 The Lines in the Figures Below Illustrate the Potential Effect

question 512

Multiple Choice

Figure 16-8
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 16-8. Panel (d) illustrates the change that would occur if existing firms faced

• A)long-run economic losses.
• B)a decrease in the diversity of products offered in the market.
• C)new entrants in the market.
• D)firms exiting the market.

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