Suppose a Competitive Market Is Comprised of Firms That Face

question 232

Multiple Choice

Suppose a competitive market is comprised of firms that face identical cost curves. The firms experience an increase in demand that results in positive profits for the firms. Which of the following events are then most likely to occur? (i)
New firms will enter the market.
(ii)
In the short run, price will rise; in the long run, price will rise further.
(iii)
In the long run, all firms will be producing at their efficient scale.

• A)(i) and (ii) only
• B)(i) and (iii) only
• C)(ii) and (iii) only
• D)(i), (ii) and (iii)

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Definitions:

First Word

The initial stage of verbal expression in infants, marking the beginning of spoken language acquisition.

Cultural Background

The cultural identity, beliefs, norms, and values that are shared among people from the same social group or heritage.

Intonation

The variation of pitch while speaking, which can affect the meaning of words and sentences, and is a critical aspect of verbal communication and language.

Cooing

Cooing refers to the early vocalization of infants, characterized by the production of soft, vowel-like sounds.