Assuming That the Total Market Size Remains Constant, a Monopolistically

question 217

Multiple Choice

Assuming that the total market size remains constant, a monopolistically competitive firm earning profits in the short run will find the demand for its product decreasing in the long run because

• A)new entrants into the market are more likely to have cutting edge products.
• B)as the firm raises its price in the long run, it will lose some customers to new entrants in the market.
• C)some of its customers have switched to purchasing the products of new entrants in the market.
• D)its costs of production rises.

---

Definitions:

Labor Parties

Political parties that primarily represent the interests of the working class and advocate for policies such as workers' rights, social justice, and income equality.

Service Sector

A segment of the economy that involves providing services instead of goods or products to consumers and businesses.

Manual Workers

Individuals who perform physical work, often involving the use of hands and physical skill, in various industries such as construction, manufacturing, or agriculture.

Social Structures

The complex framework of societal institutions (such as the economy, politics, and family) and the social practices (norms, rules, and roles) that make up a society and organize and limit the actions of its members.