Exhibit 9-1 A monopolistic competitive firm In the long run, which of the following is true for the firm shown in Exhibit 9-1?

Question

Exhibit 9-1  A monopolistic competitive firm  In the long run, which of the following is true for the firm shown in Exhibit 9-1?

Quizplus · Accepted Answer

In the long run, a monopolistic competitive firm can experience a leftward shift in demand due to increased competition, which would result in lower prices and lower profits for the firm. Additionally, the firm's average total cost curve can shift upward if there are increased costs of production, such as higher wages or raw material costs. Therefore, both options A and B are possible outcomes for the firm in the long run.

Exhibit 9-1 a Monopolistic Competitive Firm in the Long Run