Solved

Refer to the Graph Shown of a Monopolistically Competitive Firm

Question 197

Multiple Choice

Refer to the graph shown of a monopolistically competitive firm. In the long run: Refer to the graph shown of a monopolistically competitive firm. In the long run:   A)  marginal cost will fall for firms that remain as other firms exit the industry. B)  average total cost will rise for firms that remain as other firms enter the industry. C)  demand will fall for firms that remain as other firms enter the industry. D)  demand will rise for firms that remain as other firms exit the industry.


A) marginal cost will fall for firms that remain as other firms exit the industry.
B) average total cost will rise for firms that remain as other firms enter the industry.
C) demand will fall for firms that remain as other firms enter the industry.
D) demand will rise for firms that remain as other firms exit the industry.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents