When firms exit a monopolistically competitive industry:
A) the average total cost curves of remaining firms will shift upward.
B) the demand curves of remaining firms are increased at each level of output.
C) the remaining firms will decrease production.
D) the average revenue received by remaining firms will decrease at each level of output.

Question

Quizplus · Accepted Answer

The Answer of When firms exit a monopolistically competitive industry:
A) the average total cost curves of remaining firms will shift upward.
B) the demand curves of remaining firms are increased at each level of output.
C) the remaining firms will decrease production.
D) the average revenue received by remaining firms will decrease at each level of output.

When Firms Exit a Monopolistically Competitive Industry