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)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter13: Firms In Competitive Markets

Section: Chapter Questions

Problem 7PA

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