Refer to the Graph Shown, Which Depicts a Perfectly Competitive

question 166

Multiple Choice

Refer to the graph shown, which depicts a perfectly competitive firm. If the price of the product is $3:

• A)new firms will enter the industry.
• B)the firm will just cover its opportunity cost of production.
• C)the industry will be in long-run equilibrium.
• D)the firm may continue to operate in the short run but will exit the industry in the long run.

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Definitions:

Situational Factors

External influences that can affect an individual's behavior or decision-making process, emphasizing the impact of the immediate physical and social environment.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically improving on simple tasks and doing poorly on complex tasks.

Challenging Tasks

Assignments or projects that require significant effort, skill, or time to complete successfully.

Novel Tasks

Activities or problems that are new and unfamiliar to an individual, requiring novel solutions.