Refer to the Following Figure

question 68

Multiple Choice

Refer to the following figure:

The graph on the left shows long-run average and marginal cost for a typical firm in a perfectly competitive industry. The graph on the right shows demand and long-run supply for an increasing-cost industry.
-If this were an increasing cost industry, what would be the price when the industry gets to long-run competitive equilibrium?

• A) between $35 and $15
• B) $35
• C) $15
• D) below $15
• E) above $35

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Definitions:

Mandated By Law

Requirements or actions that are legally imposed and regulated by legislation, which individuals or entities must comply with.

Host-Based Pay

Expatriate pay comparable to that earned by employees in a host country.

Skill-Based Pay

A compensation system that sets pay levels based on the skills or knowledge an employee possesses, rather than their job title or position.

Third-Country-Based Pay

A compensation strategy where an employee's pay is based on the standard of living and market rates in a country different from both the home and host countries.