In the Short Run, There Are 500 Identical Firms in a Competitive

question 555

Multiple Choice

In the short run, there are 500 identical firms in a competitive market. The firms do not use any resources that are available in limited quantities, and each of them has the following cost structure: The long-run supply curve for this market is

• A)positively sloped for all prices above $10.
• B)horizontal at a price of $5.
• C)horizontal at a price of $6.
• D)horizontal at a price of $7.

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Definitions:

Mobile-Network Operator

A company that provides wireless communications services to mobile phone subscribers.

Conglomerate

A large corporation composed of diverse companies in various industries under a single corporate group, often achieved through mergers and acquisitions.

Interlock

A situation where members of the board of directors in one company also serve as members of the board in another company, potentially creating conflicts of interest.

Clayton Act

A U.S. legislation enacted in 1914 aimed at preventing anti-competitive practices in their incipiency, including prohibiting mergers and acquisitions that could reduce competition.