Suppose That the Sub Sandwich Business Is a Competitive,constant-Cost Industry

question 29

Multiple Choice

Suppose that the sub sandwich business is a competitive,constant-cost industry.An increase in demand for sub sandwiches,will,in the long-run lead to

• A) an increase in price and industry output,but no increase in the output of existing firms.
• B) no increase in price,no increase in the output of existing firms but an increase in industry output because of new firms.
• C) no increase in price and an increase in industry output as each existing firm produces more.
• D) no changes in price,output of existing firms or the number of firms in the industry.

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Definitions:

General Agents

Representatives of insurance companies who have the authority to act on behalf of these companies in various transactions.

Corporate Officers

Individuals elected or appointed to manage the day-to-day operations and strategic direction of a corporation, such as CEOs, CFOs, and COOs.

Derivative Suit

A lawsuit brought by shareholders on behalf of the corporation.

Direct Injury

A physical or emotional harm caused directly by an incident or action without intermediate steps.