Suppose a Firm Operates in the Short Run at a Price

question 32

Multiple Choice

Suppose a firm operates in the short run at a price above its average total cost of production. In the long run the firm should expect

• A)new firms to enter the market.
• B)the market price to rise.
• C)its profits to rise.
• D)Both b and c are correct.

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Definitions:

Vision

Vision pertains to the ability to see, including the process by which light is converted by the eye into electrical signals for interpretation by the brain.

Taste

A sense that allows the detection of flavor, or the aesthetic discernment and appreciation of things.

Hearing

The physiological process by which sound waves are converted into electrical signals that are interpreted by the brain.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed, seen, or heard, a concept important in cognitive development.