In the Long Run,what Happens to the Demand Curve Facing

question 318

Multiple Choice

In the long run,what happens to the demand curve facing a monopolistically competitive firm that is earning short-run profits?

• A) The demand curve will shift to the left and become more elastic.
• B) The demand curve will shift to the left and become less elastic.
• C) The demand curve will shift to the right and become more elastic.
• D) The demand curve will shift to the right and become less elastic.

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Definitions:

Business Operations

All the activities involved in the day-to-day running of a business that directly relate to its producing and delivering its products or services.