If an Industry Experiences an Increase in the Number of Firms,then

question 91

Multiple Choice

If an industry experiences an increase in the number of firms,then

• A) the original firms will produce more.
• B) the new firms will produce more than the original firms.
• C) the industry supply curve will shift left.
• D) the new firms will produce the same amount as the original firms.
• E) the industry supply curve will shift right.

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Definitions:

Delivery Time

The period it takes for a product or service to be delivered to a customer after an order has been placed.

Implied Demand Uncertainty

The unpredictability in demand faced by a company due to factors like customer preferences, market conditions, and technological changes, indirectly inferred through observed behaviors or trends.

Demand Uncertainty

The difficulty in accurately predicting customer demand, affecting inventory management, production planning, and capacity utilization.

Forecast Error

The difference between the forecasted value and the actual value that occurs, indicating the accuracy of forecasts.