Figure 6.5 -Figure 6.5 Shows the Short-Run and Long-Run Effects of an of an Increase

question 3

Multiple Choice

Figure 6.5
-Figure 6.5 shows the short-run and long-run effects of an increase in demand of an industry. The market is in equilibrium at point A, where 100 identical firms produce 6 units of a product per hour. Suppose that the market demand curve shifts to the right. Why is the short-run supply curve steeper than the long-run supply curve?

• A)Because production facilities are fixed in the short-run.
• B)Because each firm experiences diminishing returns in the short-run.
• C)Because production becomes costlier as firms squeeze more output from the existing production facilities.
• D)all of the above

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Definitions:

Abdominal Mass

A lump felt in the abdomen that may be caused by a variety of medical conditions, ranging from benign cysts to cancers.

Cardiac Muscle Fibers

Specialized muscle fibers in the heart that are responsible for the heart's contraction and pumping action.

Striations

Parallel lines or grooves on a surface, often seen in muscle fibers and certain types of rocks, indicative of specific structural or formation processes.

Cellular Fragments

Pieces or parts of cells that have broken off from the main cell body, often involved in specific bodily functions.