The Figure Below Shows the Revenue and Cost Curves of a Monopolistically

question 19

Multiple Choice

The figure below shows the revenue and cost curves of a monopolistically competitive firm. Figure 25.2 In the figure,
D: Demand curve
MR: Marginal revenue curve
ATC₁ and ATC₂: Average total cost curves
MC: Marginal cost curve
In Figure 25.2, assume that the average total cost of the firm is represented by the curve ATC₂.In the long run, we would expect:

• A)entry of firms into the market because economic profits exist.
• B)exit of firms from the market because the existing firms suffer economic losses.
• C)that demand for each firm will increase.
• D)the market to become perfectly competitive.
• E)the market to become a monopoly.

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Definitions:

ABAB Design

A research design for evaluating the effect of a treatment by repeatedly alternating between a baseline period and a treatment phase.

Therapeutic Intervention

A strategic action or treatment, often within the context of psychotherapy, designed to help individuals overcome issues or attain better functioning.

Intervention Effect

The outcome or change resulting from a specific action or intervention, often used in the context of clinical trials or social science research to assess the impact of treatments or interventions.

Positive Reinforcers

Stimuli that, when presented after a behavior, increase the likelihood of that behavior being repeated.