In the Long Run, What Happens to the Demand Curve

question 88

Multiple Choice

In the long run, what happens to the demand curve facing a monopolistically competitive firm that is earning short-run profits?

• A)The demand curve will shift to the left and became more elastic.
• B)The demand curve will shift to the left and became less elastic.
• C)The demand curve will shift to the right and became more elastic.
• D)The demand curve will shift to the right and became less elastic.

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Definitions:

Cognitions

Mental processes that encompass the functions of understanding, including thinking, reasoning, and remembering.

Categories

Distinct groups or classes into which objects, concepts, or entities with common characteristics or features are divided and organized.

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A developmental stage proposed by Erikson where adolescents seek to understand and establish their personal identity and direction.

Generativity Vs. Stagnation

A stage of adult development focusing on creating or nurturing things that will outlast an individual, versus a lack of psychological growth.