Table 16-5 This Table Shows the Demand Schedule, Marginal Cost, and Average

question 11

Multiple Choice

Table 16-5
This table shows the demand schedule, marginal cost, and average total cost for a monopolistically competitive firm.
-Refer to Table 16-5. Which of the following statements regarding this monopolistically competitive firm is correct?

• A)New firms will enter this market in the long run since firm profits are greater than zero.
• B)Firms will leave this market in the long run since firm profits are less than zero.
• C)This firm is currently in long-run equilibrium.
• D)This firm is currently in long-run equilibrium, and the firm is producing its efficient scale of output.

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Definitions:

Auditory Canal

A tube-like structure that leads from the outer ear to the eardrum, playing a crucial role in directing sound waves to the inner ear.

Eardrum

A thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves.

Basilar Membrane

A structure in the cochlea of the inner ear that plays a critical role in the sense of hearing by vibrating in response to sound, helping to translate sound waves into neural signals.

Olfactory Epithelium

The lining of the roof of the nasal cavity, containing a sheet of receptor cells for smell.