Assuming That the Total Market Size Remains Constant, a Monopolistically

question 217

Multiple Choice

Assuming that the total market size remains constant, a monopolistically competitive firm earning profits in the short run will find the demand for its product decreasing in the long run because

• A)new entrants into the market are more likely to have cutting edge products.
• B)as the firm raises its price in the long run, it will lose some customers to new entrants in the market.
• C)some of its customers have switched to purchasing the products of new entrants in the market.
• D)its costs of production rises.

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Definitions:

Invoice

A document issued by a seller to a buyer, listing goods or services provided, with their prices, and requesting payment.

EOM

EOM stands for "End of Month," which is a term often used in accounting and business to signify deadlines or the conclusion of financial periods.

Invoice

A document issued by a seller to a buyer that specifies the products or services provided and the corresponding payment terms.

Scratch-and-Save

A promotional discount method where customers scratch a card to reveal a discount or prize.