Refer to the Accompanying Graph

question 101

Multiple Choice

Refer to the accompanying graph. If all firms in the industry are the same as the monopolistically competitive firm shown, the long run will reflect:

• A) firms leaving the industry.
• B) all firms earning positive economic profits.
• C) some firms earning positive economic profit and others experiencing economic loss.
• D) competition from new firms that enter the industry.
• E) all firms earning economic profit of exactly $300 per day.

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Definitions:

Complex Civilizations

Societies with highly developed cultural, political, and economic systems, characterized by urban development, social stratification, and forms of government.

Accumulating Wealth

The process of amassing resources or assets of value over time, typically for the purpose of securing financial stability or achieving economic power.

Algonquians

A group of Native American peoples speaking Algonquian languages, widespread across North America, particularly in the northeastern region.

Settled Agriculture

The practice of cultivating the land and raising crops on a continual basis, a key development in human history that led to the growth of civilizations.