The Figure Given Below Shows the Cost and Revenue Curves

question 37

Multiple Choice

The figure given below shows the cost and revenue curves of a monopolist.Figure 11.9
D: Average revenue
MR: Marginal revenue
ATC: Average total cost
MC: Marginal cost
-If a monopolistically competitive industry is in long-run equilibrium and suddenly the cost of resources increases, then:

• A)the demand and average-revenue curves will shift to the right.
• B)the demand and average-revenue curves will shift to the left.
• C)some firms will eventually leave the industry.
• D)new firms will eventually enter the industry.
• E)the cost structure of the firm will shift down.

---

Definitions:

Punished

The infliction or imposition of a penalty as retribution for an offense or undesirable behavior.

Moral Thought

The process of reasoning about the ethical correctness or morality of actions and principles.

Kohlberg's Theory

Refers to the psychological theory proposed by Lawrence Kohlberg about the development of moral reasoning in individuals, consisting of three levels and six stages.

Moral Behavior

Conduct that is right or good in the context of governing moral principles.