Figure 16-11 -Refer to Figure 16-11. the Graph Depicts a Monopolistically Competitive

question 513

Multiple Choice

Figure 16-11
-Refer to Figure 16-11. The graph depicts a monopolistically competitive firm in the short run. Which of the following explanations best describes the long run adjustment?

• A)More firms will enter this market and each firm will have a smaller share of the total market demand, shifting this firm's demand curve to the left.
• B)More firms will enter this market and each firm will have a larger share of the total market demand, shifting this firm's demand to the right.
• C)Firms will exit this market and each firm will have a smaller share of the total market demand, shifting this firm's demand to the left.
• D)Firms will exit this market and each firm will have a larger share of the total market demand, shifting this firm's demand to the right.

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