In the Long Run If Some Firms Are Losing Money

question 149

Multiple Choice

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

• A)the industry supply curve cannot increase because of high barriers to entry.
• B)the industry supply curve will increase and market price will fall.
• C)the industry supply curve cannot decease because of high barriers to entry.
• D)the industry supply curve will decrease and market price will rise.

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Definitions:

S Corporations

A type of corporation that meets specific Internal Revenue Code requirements, allowing profits to be passed directly to shareholders and avoid double taxation.