Which of the Following Describes the Relative Positions of the Demand

question 156

Multiple Choice

Which of the following describes the relative positions of the demand curve and the average total cost (ATC) curve of a monopolistically competitive firm that earns a profit in the short run?

• A)In the short run, the firm's demand curve will lie above its ATC curve.The demand curve will be tangent to the ATC curve in the long run.
• B)In the short run, the firm's demand curve will lie below its ATC curve.The demand curve will be tangent to the ATC curve in the long run.
• C)In the short run, the firm's demand curve will cross its ATC curve at the ATC curve's lowest point.The demand curve will be above the ATC curve in the long run.
• D)In the short run, the firm's ATC curve will cross the demand curve at the profit maximising level of output.The demand curve will be tangent to the ATC curve in the long run.

---

Definitions:

Newsroom

The office environment where journalists, editors, and production staff work together to research, write, and produce news stories.

Working-Class Characters

Are individuals portrayed in media or literature, representing the socio-economic class that performs manual labor and is usually paid hourly.

Sitcoms

Short for "situational comedies," these are television series that revolve around a fixed set of characters in a comedic storyline, often set in a home or workplace environment.

Verbal Aggression

A form of behavior in which words are used to cause harm to a person, typically through insult or coercion.