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.

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Definitions:

Conversion Disorder

A mental health condition where a person has blindness, paralysis, or other nervous system symptoms that cannot be explained by medical evaluation.

Compulsive

Pertaining to behavior performed persistently and repetitively without rational motivation, often to the detriment of the individual's well-being.

Obsessive

Characterized by persistent, intrusive, and unwanted thoughts or behaviors that are difficult to suppress or ignore.

Phobic

Pertaining to an irrational and excessive fear of a particular object, situation, or activity.