Figure 16-9
The figure is drawn for a monopolistically-competitive firm.
-Refer to Figure 16-9. In response to the situation represented by the figure, we would expect
A)new firms to enter the market.
B)some of the firms that are currently in the market to exit.
C)this firm's profit to move from its current value toward a positive value.
D)None of the above are correct.

Question

Figure 16-9
The figure is drawn for a monopolistically-competitive firm. 
-Refer to Figure 16-9. In response to the situation represented by the figure, we would expect
A)new firms to enter the market. 
B)some of the firms that are currently in the market to exit. 
C)this firm's profit to move from its current value toward a positive value. 
D)None of the above are correct.

Quizplus · Accepted Answer

The Answer of Figure 16-9
The figure is drawn for a monopolistically-competitive firm. 
-Refer to Figure 16-9. In response to the situation represented by the figure, we would expect
A)new firms to enter the market. 
B)some of the firms that are currently in the market to exit. 
C)this firm's profit to move from its current value toward a positive value. 
D)None of the above are correct.

Figure 16-9 The Figure Is Drawn for a Monopolistically-Competitive Firm