Multiple Choice
A monopolistically competitive firm earning profits in the short run will find the demand for its product decreasing and becoming more elastic in the long run as new firms move into the industry until
A) the original firm is driven into bankruptcy.
B) the firm's demand curve is perfectly elastic.
C) the firm's demand curve is tangent to its average total cost curve.
D) the firm exits the market.
Correct Answer:
Verified
Correct Answer:
Verified
Q220: Figure 13-4<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4193/.jpg" alt="Figure 13-4
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