The Figure Given Below Shows the Revenue and Cost Curves

question 12

Multiple Choice

The figure given below shows the revenue and cost curves of a monopolistically competitive firm. Figure 25.4 MR: Marginal revenue curve
ATC: Average total cost curve
MC: Marginal cost curve
Assume that the firm in Figure 25.4 is monopolistically competitive.In the long run, we would expect:

• A)the price of the firm's output to increase.
• B)entry of new firms because economic profits are positive.
• C)exit of few existing firms because economic profits are negative.
• D)the firm's demand curve to shift outward.
• E)the firm's demand curve to becomes less elastic.

---

Definitions:

Lesbian Bars

Social venues catering primarily to lesbian women, providing safe spaces for socializing, community building, and cultural expression within the LGBTQ+ community.

1920s and 1930s

A historical period characterized by significant social, political, and economic changes worldwide, including the aftermath of World War I, the Great Depression, and the rise of new cultural movements.

Sexual Orientation

An inherent or immutable enduring emotional, romantic, or sexual attraction to other people, which can be towards the same sex, the opposite sex, both, or neither.

Discourse Of Promiscuity

A societal conversation that labels and often negatively judges free and diverse sexual behaviors.