Firms Are Making Profits in an Increasing-Cost Industry

question 178

Multiple Choice

Firms are making profits in an increasing-cost industry. Which of the following statements describes what will happen in the long run?

• A) More firms will enter this industry, causing the industry supply schedule to shift to the right and the LRAC curve facing firms to shift down.
• B) More firms will enter this industry, causing the industry supply schedule to shift to the right and the LRAC curve facing firms to shift up.
• C) Firms will exit this industry, causing the industry supply schedule to shift to the right and the LRAC curve to shift down.
• D) Firms will exit this industry, causing the industry supply schedule to shift to the left and the LRAC curve to shift down.

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Definitions:

Sequential Processing

A cognitive approach that involves analyzing and responding to information in a sequential, step-by-step manner.

Parallel Processing

The ability of the brain to simultaneously process incoming stimuli of differing quality, a key feature of neural function in both human and animal brains.

Dual Processing

The concept that information is frequently processed at the same time through distinct conscious and unconscious pathways in the brain.

Blindsight Processing

A phenomenon where individuals with cortical blindness can respond to visual stimuli without consciously perceiving them, indicating non-conscious visual processing.