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:

Thyroid

A butterfly-shaped gland located in the neck, producing hormones that regulate metabolism, energy generation, and growth.

Adrenal

refers to small, triangular glands located above the kidneys that produce hormones like adrenaline and cortisol, playing a key role in the body's stress response.

Thyroid

A gland in the neck that produces hormones regulating the body's metabolic rate as well as heart and digestive function.

Anterior Neck

The front part of the neck, which includes structures such as the throat, thyroid gland, and lymph nodes.