In the Long Run, What Happens to the Demand Curve

question 88

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

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Definitions:

Meals

Food services provided, often in contexts such as schools, hospitals, or large events, but can also refer to the food products themselves.

Budgeting Purposes

The process of creating a plan to spend your money, outlining an organization's financial and operational goals.

Fixed Cost

Costs that do not change with the level of output produced, such as rent, salaries, and insurance.

Variable Cost

A cost that changes in proportion to the level of activity or volume of output.