Suppose That Firms in a Monopolistically Competitive Industry Are Earning

question 167

Multiple Choice

Suppose that firms in a monopolistically competitive industry are earning short-run economic profits.In the long run, the demand curve facing each individual firm can be expected to

• A)shift to the left and become flatter
• B)shift to the left and become steeper
• C)shift to the right and become flatter
• D)shift to the right and become steeper
• E)remain constant

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Definitions:

Chemical Elements

Pure substances consisting of only one type of atom, distinguished by its atomic number, the number of protons in its nucleus.

Basic Elements

Fundamental components or parts that constitute an object, concept, or system.

Sensations

The physical feelings or perceptions resulting from something that happens to or comes into contact with the body.

Structuralism

An approach in psychology that seeks to understand the structure of the mind by analyzing its components, like sensations and perceptions.