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

question 162

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: Which of the following is a point on the long-run supply curve?

• A)P=$10, Q=500.
• B)P=$6, Q=1,000.
• C)P=$5, Q=500.
• D)P=$5, Q=1,500.

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Definitions:

Foreign Assets

Investments or property owned by individuals or entities in countries other than their own, including stocks, bonds, and real estate.

Domestic Assets

Assets located within a country's borders and denominated in the country's legal tender.

Exports

Goods or services produced in one country and sold to buyers in another country, contributing to a nation's economy.

Nominal Exchange Rate

The speed at which one form of currency can be traded for another.