Table 16-4 This Table Shows the Demand Schedule, Marginal Cost, and Average

question 131

Multiple Choice

Table 16-4
This table shows the demand schedule, marginal cost, and average total cost for a monopolistically competitive firm.
-Refer to Table 16-4. Which of the following is likely to happen in the long run in this market?

• A)The market is currently in a long-run equilibrium.
• B)The market price is likely to rise.
• C)Firms are likely to enter the market since firms are earning a positive economic profit.
• D)Firms are likely to leave the market since firms are earning a negative economic profit.

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Definitions:

Motivation

The force that moves people to behave, think, and feel the way they do.

Self-perception Theory

A psychological theory suggesting that people develop their attitudes and opinions by observing their own behavior and concluding what attitudes must have caused it.

Psychological Discomfort

A mental state of unease which can stem from anxiety, stress, unfamiliarity, or situations that push one out of their comfort zone.

Attitudes

A settled way of thinking or feeling about someone or something, typically reflected in a person's behavior.