The firm is producing the profit-maximizing output b. The firm could increase its profit by increasing its price c. The firm could increase its profit by increasing its output d. The firm could increase its profit by decreasing its output 29. A monopolistically competitive firm's demand curve is downward sloping because a. other firms are free to enter the market b.
Imperfect competition implies that in the long run a.
As labor costs account for a larger portion of total costs, demand for labor becomes a. less elastic b. more elastic c. In a perfectly competitive labor market, the supply curve of labor faced by the individual firm is a. perfectly inelastic at the market wage b. equal to the market wage c.