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:

Somatic Symptom Disorder

A mental disorder in which a person has significant focus on physical symptoms, such as pain, that causes major emotional distress and problems functioning.

Illness Anxiety Disorders

A condition characterized by excessive worry about having or acquiring a serious illness, despite medical reassurance.

Conversion Disorders

Psychological conditions where emotional distress or unconscious conflict is expressed through physical symptoms, without a medical cause.

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