Entry and Exit Drive Each Firm in a Monopolistically Competitive

question 641

Multiple Choice

Entry and exit drive each firm in a monopolistically competitive market to a point of tangency between its

• A)marginal revenue curve and its total cost curve.
• B)marginal revenue curve and its average total cost curve.
• C)demand curve and its total cost curve.
• D)demand curve and its average total cost curve.

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Definitions:

Package

A container or wrapping in which products are sold, transported, or stored, also considered as part of the product's branding and marketing.

Situation Analysis

Taking stock of where the firm or product has been recently, where it is now, and where it is headed in terms of the organization’s marketing plans and the external forces and trends affecting it.

External Forces

Factors outside of an organization that affect its performance, including economic, political, social, and technological influences.

Marketing Plans

Structured outlines that detail strategies, tactics, targeted activities, and allocations of resources for achieving the marketing goals of a business.