Use the Following to Answer Questions

question 52

Multiple Choice

Use the following to answer questions:
Figure: Monopolistic Competition
-(Figure: Monopolistic Competition) Refer to the figure. Suppose the figure represents a firm that operates in a monopolistic competitive market. In the long run you would expect prices in this market to:

• A) stay the same.
• B) increase as unprofitable firms leave the industry.
• C) decrease to the point that P = AC.
• D) decrease to the point that P = MC.

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Definitions:

Freedmen's Bank

Originally known as the Freedman's Saving and Trust Company, this was a private corporation chartered by the U.S. government to encourage and guide the economic development of newly freed African Americans after the Civil War.

Panic of 1873

A financial crisis that triggered a severe international economic depression in both Europe and the United States, lasting from 1873 to 1879.

Gender and Race

Intersecting social categories that affect individuals' experiences and opportunities, often studied in the context of discrimination, inequality, and social justice.

Matriarchal Authority

Social systems or practices where females, especially mothers, have primary power and authority in decision-making.