In Perfect Competition,a Change in Fixed Cost Will

question 295

Multiple Choice

In perfect competition,a change in fixed cost will:

• A)cause a change in the price in the short run.
• B)cause a change in output in the short run.
• C)encourage entry or exit in the long run such that price will change enough to leave firms earning zero profits.
• D)cause a change in variable cost.

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Definitions:

Fantasies

Imagined scenarios or sequences of events that are often improbable or impossible.

Nervous System

The complex network of nerve cells and fibers that transmits nerve impulses between parts of the body, coordinating actions and sensory information.

Dreams

Series of thoughts, images, and sensations occurring in a person's mind during sleep, often symbolic or seemingly nonsensical.

Self-Fulfillment

The realization or fulfillment of one's talents and potentialities, often considered as a drive or need present in everyone.