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.

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Definitions:

Constant Speed

Maintaining a uniform speed regardless of load or other external conditions.

Rotating Magnetic Field

A magnetic field that rotates in space within an electrical machine, such as an induction motor, enabling motion of the rotor.

RPM Speed

A measure of the rotational speed of a mechanical component, denoted in revolutions per minute.

Synchronous Speed

The speed at which the magnetic field in an AC motor rotates, directly proportional to the frequency of the electrical supply and the number of poles in the motor.