The Figure Given Below Shows the Cost and Revenue Curves

question 37

Multiple Choice

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-If a monopolistically competitive industry is in long-run equilibrium and suddenly the cost of resources increases, then:

• A)the demand and average-revenue curves will shift to the right.
• B)the demand and average-revenue curves will shift to the left.
• C)some firms will eventually leave the industry.
• D)new firms will eventually enter the industry.
• E)the cost structure of the firm will shift down.

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Definitions:

Proposal Preparation

The process of creating a document that outlines a plan or suggestion for a project, including objectives and methods.

Cognitive Dissonance

A psychological discomfort experienced when holding conflicting cognitions (e.g., beliefs, attitudes, or values), leading to a motivation to reduce the inconsistency.

Contradictory Attitudes

Holding conflicting or opposing views towards an object, person, or situation simultaneously.

Same Object

refers to an identical item or entity being considered or discussed, emphasizing the lack of difference or distinction between them.