Refer to Figure 1A.2. The slope between points a and c is:

We can represent the entry of new firms into a monopolistically competitive market by shifting the existing firms':

a. demand curves downward. b. demand curves upward. c. demand curves more inelastic. d. cost curves upward. e. cost curves downward.

The short-run average total cost curve eventually turns upward to form a U shape because: a. of diminishing marginal cost

b. of increasing average fixed cost. c. all factors can be varied in the long run. d. of diminishing marginal productivity.