An Increase in Demand in a Perfectly Competitive Industry Characterized

question 81

Multiple Choice

An increase in demand in a perfectly competitive industry characterized by constant costs will cause a(n) :

• A) permanent increase in price.
• B) economic loss for firms.
• C) increase in the quantity supplied in the short run and an increase in market supply in the long run.
• D) decrease in firms' marginal revenue.

---

Definitions:

Adults

Individuals who are considered to be fully grown or developed, typically over the age of maturity which varies among different cultures and legal systems.

Limits

Boundaries or constraints established to define acceptable behavior or actions within a specific context.

Empower

To give power or authority to; enabling individuals or groups to take control of their circumstances and achieve their own goals independently.

Children

Individuals in the early stages of life, typically from birth to puberty, who are developing physically, mentally, and socially.