When Entry and Exit Behavior of Firms in an Industry

question 143

Multiple Choice

When entry and exit behavior of firms in an industry does not affect a firm's cost structure,

• A)the long-run market supply curve must be horizontal.
• B)the long-run market supply curve must be upward-sloping.
• C)the long-run market supply curve must be downward-sloping.
• D)we do not have sufficient information to determine the shape of the long-run market supply curve.

Differentiate between various theories of color and light perception.

Understand the concept of sensation and its distinction from perception.

Apply knowledge of perceptual phenomena to explain illusions and common perceptual errors.

Understand the nature and formation of agency relationships.