Multiple Choice
Figure 8.3
-Figure 8.3 shows demands and costs for a monopolistically competitive firm. When the firmʹs demand curve shifts from D1 to D2 and to D3,
A) the demand for the firmʹs product is decreasing.
B) the firmʹs average cost of production is increasing.
C) the firmʹs marginal revenue curve also shifts to the left.
D) all of the above
Correct Answer:
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