In Monopolistic Competition,nonprice Competition

question 108

Multiple Choice

In monopolistic competition,nonprice competition

• A)allows firms to earn above-normal profit in the long run
• B)initially causes a leftward shift in the demand curve for each firm's output
• C)causes each firm to move upward along a given average total cost curve
• D)might lead to economic profit in the short run
• E)causes each firm to move toward the right along the given demand curve for its output

---

Definitions:

Acreage Allotment

A government control mechanism to limit the production of certain crops by allocating a fixed amount of acres for their cultivation.

Agricultural Products

Items produced through farming or the cultivation of soil for the growing of crops and the rearing of animals to provide food, wool, and other products.

Farm Employment

Refers to labor or jobs related to agricultural activities, including cultivation, livestock management, and crop production.

Export Demand

Refers to the desire or requirement for a country's goods or services by another country.