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Subject - Economics:

Microeconomics

MCQ - 90-4100

Question:

If firms are entering an industry that is monopolistically competitive, we would expect

  1. the demand for existing firms to shift rightward.
  2. the market price of the product to increase.
  3. the demand for existing firms to become more inelastic.
  4. the market price of the product to increase.
  5. the demand for existing firms to shift leftward.

Correct Answer: E

Explanation:

Entry of new firms takes market share from existing firms, so demand curves begin to shift to the left.

Record Performance

269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: If firms are entering an industry that is monopolistically competitive, we would expect , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 90-4100.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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