Which of the Following Would Not Occur as a Result

question 56

Multiple Choice

Which of the following would not occur as a result of a monopolistically competitive firm suffering a short-run economic loss?

• A)The firm could exit the industry in the long run.
• B)If the firm does not exit the industry in the long run, its demand curve will shift to the left.
• C)If the firm does not exit the industry in the long run, its demand curve will shift to the right.
• D)If the firm remains in the industry in the long run, it will break even.

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Definitions:

Rate of Return

Earnings or losses seen on an investment during a fixed interval, presented as a percentage of the investment's first cost.

Compounded Monthly

Indicates that interest is calculated and added to the principal balance of an investment or loan on a monthly basis, leading to exponential growth over time.

Future Value

The value of an asset or amount of money at a specific date in the future that is equivalent in value to a specified sum today.

Rate of Interest

Another term for interest rate, it specifies the amount charged, expressed as a percentage of the principal, by a lender to a borrower for the use of assets.