If Firms Enter a Purely Competitive Industry, Then in the Long

question 71

Multiple Choice

If firms enter a purely competitive industry, then in the long run this change will shift the industry

• A)demand curve to the left, and the individual firm's demand curve will shift down.
• B)demand curve to the right, and the individual firm's demand curve will shift up.
• C)supply curve to the right, and the individual firm's demand curve will shift down.
• D)supply curve to the left, and the individual firm's demand curve will shift up.

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Definitions:

Loss-leader Pricing

A marketing strategy where a product is sold at a loss to attract customers in the hope they will make additional purchases.

Customary Price

The expected or typical price range for a product or service within a particular market or industry, based on tradition or standard practice.

Nationally Branded

Products or services that are marketed under a manufacturer's brand name and widely recognized across a country.

Price Premium

An additional amount that consumers are willing to pay for a product or service perceived to have a higher value compared to its competitors.