If Entry Is Completely Free, the Demand Curve for the Leading

question 115

Multiple Choice

If entry is completely free, the demand curve for the leading, profit-making monopolistic competitor will

• A)Become steeper while moving to the right.
• B)Move to the left until where MC=MR is where the ATC curve is tangent to the demand curve.
• C)Move to the left until where MC=MR is where the AVC curve is tangent to the demand curve.
• D)Move to the right until where MC=MR is where the ATC curve is tangent to the demand curve.

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Definitions:

Line Structure

The simplest form of organizational structure that direct lines of authority flow from top management to individual employees, establishing a clear hierarchy.