When New Firms Are Encouraged to Enter a Monopolistically Competitive

question 35

Multiple Choice

When new firms are encouraged to enter a monopolistically competitive market,

• A)some existing firms must be earning economic profits.
• B)they do so because there is insufficient product differentiation.
• C)the demand curve facing an existing firm shifts to the right.
• D)the marginal cost curve facing an existing firm shifts downwards.

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Definitions:

Psychotherapy

A form of therapy that involves talking with a therapist to address and manage psychological issues or disorders.

Drug Therapy

The treatment of disease through the administration of drugs or medications to achieve a therapeutic effect.

Aerobic Exercise

Physical exercise of low to high intensity that depends primarily on the aerobic energy-generating process, commonly known as "cardio".

State Anxiety

A temporary condition of dread or uneasiness stemming from a specific situation.