If All Existing Firms and All Potential Firms Have the Same

question 463

Multiple Choice

If all existing firms and all potential firms have the same cost curves, there are no inputs in limited quantities, and the market is characterized by free entry and exit, then the long-run market supply curve

• A)is horizontal and equal to the minimum of long-run marginal cost for each firm.
• B)must slope downward.
• C)must slope upward.
• D)is horizontal and equal to the minimum of long-run average cost for each firm.

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Definitions:

Host Countries

Nations that host businesses, organizations, or individuals from other countries, often relating to international firms or workers.

Unemployment

The condition in which a percentage of the population wants to work but is unable to find jobs.

Globalization Strategy

A plan of action adopted by a company to expand its operations and influence beyond its home country through trade, investment, and other business activities.