The Diagram Below Shows Selected Cost and Revenue Curves for a Firm

question 11

Multiple Choice

The diagram below shows selected cost and revenue curves for a firm in a monopolistically competitive industry. FIGURE 11-1
-Refer to Figure 11-1.Which of the following statements best describes the long-run equilibrium for this firm?

• A)New firms will enter,causing this firm's demand curve to shift to the left until its profits are eliminated.
• B)The firm will continue to earn its existing level of profits.
• C)The firm will continue to earn its existing level of profits because it can prevent the entry of new firms to the market.
• D)Firms with similar cost structures will exit the industry until profits are zero.
• E)The AC curve will shift down in the long run and profits for this particular firm will increase.

Recognize the demographic characteristics of migrant labor forces in large economies.

Comprehend the impact of reproductive technologies and adoption practices on family structures.

Identify different types of family and household compositions.

Describe various residence patterns and their significance.

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for regulating the nation's monetary policy and financial institutions.

Export Promotion

Government policies or initiatives aimed at encouraging or supporting local producers to increase their sales abroad, often as a strategy to boost economic growth.

Industrial Production

The total output of a country's manufacturing, mining, and utilities segments.

United States

A country in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.