The figure shows the demand and cost curves for a firm in monopolistic competition. In the long run, the demand for this firm's product will A. decrease as other firms enter the industry. B. become less elastic as firms exit the industry. C. become less elastic as other firms enter the industry. ○ D. decrease as product differences disappear. - Price and costs (dollars per unit) 10 5 5 MR 0 4 8 12 MC ATC D 16 20 24 26 Quantity (units per day)

The figure shows the demand and cost curves for a firm in monopolistic competition. In the long run, the demand for this firm's product will A. decrease as other firms enter the industry. B. become less elastic as firms exit the industry. C. become less elastic as other firms enter the industry. ○ D. decrease as product differences disappear. - Price and costs (dollars per unit) 10 5 5 MR 0 4 8 12 MC ATC D 16 20 24 26 Quantity (units per day)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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