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Figure: Monopolistic Competition VI
-(Figure: Monopolistic Competition VI) The figure Monopolistic Competition VI illustrates a firm in the _____; in the _____, the demand and marginal revenue curves will shift to the _____.
A) short run; long run; right
B) long run; short run; left
C) short run; long run; left
D) long run; short run; right

Question

Use the following to answer questions:
Figure: Monopolistic Competition VI 
-(Figure: Monopolistic Competition VI) The figure Monopolistic Competition VI illustrates a firm in the _____; in the _____, the demand and marginal revenue curves will shift to the _____.
A) short run; long run; right 
B) long run; short run; left 
C) short run; long run; left 
D) long run; short run; right

Quizplus · Accepted Answer

In the short run, a firm in monopolistic competition faces a downward-sloping demand curve. In the long run, new firms will enter the market, causing the demand curve for each firm to shift to the left.

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