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Figure: Monopolistic Competition III
-(Figure: Monopolistic Competition III)Use Figure: Monopolistic Competition III.The figure shows the demand,marginal revenue,marginal cost,and average total cost curves for Pat's Pizza Parlor,a monopolistic competitor in the food-to-go industry.In the long run,the demand curve for Pat's Pizza Parlor will shift to the _____ as competitors _____ the market.
A)right;enter
B)right;leave
C)left;enter
D)left;leave

Question

Use the following to answer question:
Figure: Monopolistic Competition III 
-(Figure: Monopolistic Competition III)Use Figure: Monopolistic Competition III.The figure shows the demand,marginal revenue,marginal cost,and average total cost curves for Pat's Pizza Parlor,a monopolistic competitor in the food-to-go industry.In the long run,the demand curve for Pat's Pizza Parlor will shift to the _____ as competitors _____ the market.
A)right;enter 
B)right;leave 
C)left;enter 
D)left;leave

Quizplus · Accepted Answer

In the long run, as competitors enter the market, the demand for Pat's Pizza Parlor will decrease because consumers will have more options to choose from. This leads to a leftward shift in the demand curve.

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