Price, cost, revenue $100 $90 $80 $70 $60 $50 0000 MC MR D 0 7000 14000 21000 12000 Dresses per year Refer to the graph shown of a monopolistically competitive firm. In the long run: marginal cost will fall for firms that remain as other firms exit the industry. demand will fall for firms that remain as other firms enter the industry. Odemand will rise for firms that remain as other firms exit the industry. average total cost will rise for firms that remain as other firms enter the industry. AC
Price, cost, revenue $100 $90 $80 $70 $60 $50 0000 MC MR D 0 7000 14000 21000 12000 Dresses per year Refer to the graph shown of a monopolistically competitive firm. In the long run: marginal cost will fall for firms that remain as other firms exit the industry. demand will fall for firms that remain as other firms enter the industry. Odemand will rise for firms that remain as other firms exit the industry. average total cost will rise for firms that remain as other firms enter the industry. AC
Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
Problem 6P
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Question
Transcribed Image Text:Price, cost, revenue
$100
$90
$80
$70
$60
$50
0 000
MR
MC
D
/AC
0
7000
14000
21000
12000
Dresses per year
Refer to the graph shown of a monopolistically competitive firm. In the long run:
marginal cost will fall for firms that remain as other firms exit the industry.
demand will fall for firms that remain as other firms enter the industry.
Odemand will rise for firms that remain as other firms exit the industry.
O average total cost will rise for firms that remain as other firms enter the industry.
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