Asked by christopher Neville on Jul 21, 2024
Verified
Which of the following statements concerning a monopolistically competitive industry is correct?
A) If there are short-run losses,firms will leave the industry and the demand curves of the remaining firms will shift to the right.
B) If there are short-run economic profits,firms will enter the industry and the demand curves of existing firms will shift to the right.
C) If there are short-run losses,firms will leave the industry and the demand curves of the remaining firms will shift to the left.
D) If there are short-run economic profits,firms will leave the industry and the demand curves of the remaining firms will shift to the right.
Economic Profits
The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, indicating surplus beyond the normal profit level.
Demand Curves
Graphical representations that show the relationship between the price of a good or service and the quantity demanded by consumers.
Industry Entry
The process by which new competitors join an industry, often bringing innovation or increased competition.
- Explain the procedure and outcomes of entering or leaving a market in both the immediate and extended periods.
Verified Answer
Jul 25, 2024
Learning Objectives
- Explain the procedure and outcomes of entering or leaving a market in both the immediate and extended periods.
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