Which of the Following Will Not Happen as a Consequence

question 10

Multiple Choice

Which of the following will not happen as a consequence of a monopolistically competitive firm suffering economic losses in the short run?

• A) The firm's demand curve will shift to the right if it stays in business in the long run.
• B) The firm will exit the industry if it continues to suffer economic losses.
• C) The firm will break even if it stays in business in the long run.
• D) In the long run, the firm will be able to charge a price that is greater than its average total cost.

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Definitions:

Time-Series Graph

A graphical representation showing how a variable or set of variables changes over time, tracking trends and patterns in the data.

Unemployment Rate

The percentage of the labor force that is jobless, actively seeking employment, and available to work.

Decreased

A reduction in size, amount, extent, or degree.

Unemployment Rate

A measure of the percentage of the labor force that is jobless and actively seeking employment, often used as an indicator of the health of an economy.