When Firms in a Competitive Market Have Different Costs, It

question 63

Multiple Choice

When firms in a competitive market have different costs, it is likely that

• A)free entry and exit in the market will be violated.
• B)the market will no longer be considered competitive.
• C)long-run market supply will be downward sloping.
• D)some firms will earn positive economic profits in the long run.

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Definitions:

Autonomic Ganglion

A cluster of nerve cell bodies in the autonomic nervous system located outside the central nervous system, which acts as relay points for autonomic signals.

Autonomic Reflex Arc

A pathway that involves the autonomic nervous system, controlling involuntary functions of the body.

Sensory Neuron

A type of neuron that transmits signals from sensory receptors towards the central nervous system, allowing the body to react to environmental changes.

Integration Center

A region in the nervous system where information is processed and interpreted, usually involving the brain or spinal cord.