Which of the Following Will Not Happen as a Consequence

question 134

Multiple Choice

Which of the following will not happen as a consequence of a monopolistically competitive firm suffering economic losses in the short run?

• A)The firm's demand curve will shift to the right if it stays in business in the long run.
• B)The firm will exit the industry if it continues to suffer economic losses.
• C)The firm will break even if its stays in business in the long run.
• D)In the long run, the firm will be able to charge a price that is greater than its average total cost.

---

Definitions:

Promissory Notes

Written promises to pay a specified sum of money to a certain person at a specified time or on demand.

Real Defense

A legitimate legal defense that can be used to nullify a claim irrespective of the original contract's validity.

Holder in Due Course Rule

A legal principle that protects the purchaser of a negotiable instrument from certain claims and defenses in collecting the payment.

Consumer Credit Contracts

Agreements between borrowers and lenders where the former receives certain amount of credit from the latter for purchasing goods or services.