Refer to the Graphs Shown, Which Depict a Perfectly Competitive

question 113

Multiple Choice

Refer to the graphs shown, which depict a perfectly competitive market and firm in a constant-cost industry. If market demand increases from D₀ to D₁, in the long run:

• A)new firms will enter this market and price will return to P₀.
• B)new firms will enter this market and price will remain at P₁.
• C)some firms will exit this market and price will return to P₀.
• D)some firms will exit this market and price will remain at P₁.

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Definitions:

Previous Job

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Personal Reasons

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Campus Interview

An employment interview conducted at a college or university, often part of recruitment efforts targeting students or recent graduates.

Business Suit

A set of formal clothing consisting of a matching jacket and trousers, or a jacket and skirt, typically worn in professional settings.