Refer to the Following Graph to Answer the Following Questions

question 40

Multiple Choice

Refer to the following graph to answer the following questions:

-If all firms in a monopolistically competitive industry have demand and cost curves like those shown,we would expect,in the long run,that

• A) all firms will leave the industry.
• B) a certain percentage of existing firms will exit the industry.
• C) firms in the industry will earn negative economic profits.
• D) new firms will enter the industry.
• E) enough new firms will enter the industry that it will become perfectly competitive.

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Definitions:

Electrical Signals

Rapid changes in voltage across cell membranes, used for communication within and between neurons.

Trigger Zone

The part of a neuron where an action potential is initiated, typically located at the axon hillock.

Stretch Reflex

A muscle contraction in response to stretching within the muscle, a fundamental reflex to maintain posture.

Sensory Neuron

Neuron that is activated when its receptor endings detect a specific stimulus, such as light or pressure.