The Figure Given Below Shows the Revenue and Cost Curves

question 32

Multiple Choice

The figure given below shows the revenue and cost curves of a monopolistically competitive firm. Figure 11.4 MR: Marginal revenue curve
ATC: Average total cost curve
MC: Marginal cost curve
Assume that the firm in Figure 11.4 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:

Auxiliary Contacts

Additional contacts in electrical devices, like relays or contactors, that are used to perform secondary functions, such as signaling or interlocking circuits.

Programmed Stop Parameters

The settings or criteria within a system that determine when and how it will come to a stop or pause in its operation.

Digital Input

An input signal to a device or circuit that is either at a high (1) or low (0) state, representing binary data or on/off conditions.

Direction Of Rotation

Direction of rotation refers to the clockwise or counterclockwise movement of a mechanical component, such as a motor shaft or wheel.