When a Competitive Market Experiences an Increase in Demand That

question 44

Multiple Choice

When a competitive market experiences an increase in demand that increases production costs for existing firms and potential new entrants, which of the following is most likely to arise?

• A)The long-run market supply curve will be upward sloping.
• B)The condition of free entry into the market will be violated.
• C)Producer profits will fall in the long run.
• D)The long-run market supply curve will be horizontal as new firms enter and drive the price downward.

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Definitions:

Depersonalization-derealization Disorder

A psychiatric disorder characterized by persistent or recurrent feelings of detachment from one's self or the environment.

Illness Anxiety Disorder

A chronic psychiatric disorder characterized by excessive worry about having a serious medical illness, despite having minor or no symptoms.

Excessive Worrying

A condition where an individual experiences persistent, excessive, and unrealistic worry about everyday things, significantly impacting daily functioning.

Anxiety Disorder

A group of mental disorders characterized by significant feelings of anxiety and fear, impacting daily functioning.