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Ainat [17]
3 years ago
8

A monopolistically competitive firm

Business
1 answer:
Elanso [62]3 years ago
4 0

Answer:

a. tries to differentiate its product from competitors' products.

Explanation:

A monopolistic competition is when there are many buyers and sellers of heterogeneous goods and services .

An example of a monopolistic competition is a restaurant.

The demand curve for a monopolistic competition is downward sloping which indicates that the demand is elastic.

If in the short run ,a monopolistic competition earns economic profit, in the long run, new firms would enter in the industry wiping out the economic profit. Therefore, in the long run, a monopolistic competition doesn't operate like a monopoly. A monopoly earns economic profit both in the short and long run.

I hope my answer helps you

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Answer:

Technology improves production.

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Supply refers to the quantity of goods and services produced and offered to the market for sale.

There are several factors that could cause the supply curve to shift to the right, one of which is technology improves production. An improvement in technology will phase out manual or slow process of production hence shifts supply curve to the right.

When government increases tax on a business, if will affect the income that should have accrued to the business hence supply curve inward. An increase in input prices will affect production cost thereby shifting supply to the left. Also when there is a decline in the numbers of consumers, it will shift supply curve inward because it is these consumers that will purchase whatever that is produced and supplied to the market.

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Answer:

Antonio

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Mamont248 [21]

Answer:

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