The following figure shows the cost curves of firm that operates in a monopolistic competition market, as well as the demand (D) facing this firm and its marginal revenue (MR).

-Refer to the figure above.In the long run,this firm's MR curve is likely to ________.

Question

The following figure shows the cost curves of firm that operates in a monopolistic competition market, as well as the demand (D) facing this firm and its marginal revenue (MR).
 
-Refer to the figure above.In the long run,this firm's MR curve is likely to ________.

Quizplus · Accepted Answer

In the long run, the firm can enter or exit the market, so the MR curve will shift right.

The Following Figure Shows the Cost Curves of Firm That