8 1 point 10 MC ATC MR 10 18 Quantity Refer to graph above

8 (1 point) $10 -*- MC ,ATC MR 10 18 Quantity Refer to graph above. If the cost and demand conditions of this competitive price-searcher (monopolistic of the market, what will happen in the future? on) firm are:r Firms mill go out of business, and the market price will rise. The current market price will tend to persist into the furure. New firms will enter the market, and demand facing this firm will increase New firms will enter the market, and demand facing this firna will dechine

Solution

Option A.

Monopolistic competition is an imperfect competition.

In this type of competition,many producers sell products that are different from one another.

In monopolistic competition,profit is competed away by new firms.

This will cause the firms to go out of business and the market prices eventually rise.