In the Long Run If Some Firms Are Losing Money

question 53

Multiple Choice

In the long run if some firms are losing money in monopolistic competition

• A)the industry supply curve will increase and market price will fall.
• B)the industry supply curve will increase and market price will rise.
• C)the industry supply curve will decrease and market price will fall.
• D)the industry supply curve will decrease and market price will rise.

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Definitions:

Nonconformity

The failure of a product or service to meet specified standards or expectations, typically resulting in a breach of warranty.

Cure the Defect

The process of correcting or fixing a flaw or error in a legal document or procedure.

Confirmed Letter of Credit

A letter of credit that has an additional guarantee by a second bank, ensuring payment under the letter of credit if the issuing bank fails to do so.

Seller's Bank

A bank appointed by a seller, often in trade transactions, to handle the documentation and receipt of payment from the buyer.