The Figure Given Below Shows the Revenue and Cost Curves

question 9

Multiple Choice

The figure given below shows the revenue and cost curves of a monopolistically competitive firm.Figure 12.4
MR: Marginal revenue curve
ATC: Average total cost curve
MC: Marginal cost curve
-Assume that the firm in Figure 12.4 is monopolistically competitive. In the long-run, we would expect:

• A)the price of the firm's output to increase.
• B)new firms to enter into the market.
• C)few firms to leave the market.
• D)the firm's demand curve to shift outward.
• E)the firm's demand curve to become less elastic.

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Definitions:

Sensory Perceptions

The process of receiving and interpreting information from the external world through the sensory organs.

Preoperational Thinking

A stage in cognitive development where children from about 2 to 7 years of age are able to use language and symbols but not capable of logical reasoning.

Formal Operational Thinking

A stage in Piaget's theory of cognitive development where individuals develop the ability to think abstractly, logically, and systematically.

Overtly Physical Schemas

Cognitive structures that involve understanding the world through physical interaction and movement, often related to early childhood development.