-Fast Copy Is a Perfectly Competitive Firm

question 94

Multiple Choice

-Fast Copy is a perfectly competitive firm. The figure above shows Fast Copy's cost curves. The current market price is 4 cents per page. With no change in demand and technology, in the long run, the price will

• A) fall to 2 cents per page.
• B) rise to 5 cents per page.
• C) remain unchanged.
• D) fall to 1 cent per page.

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Definitions:

Import Quota

A government-imposed limit on the quantity of a specific type of good that can be imported into a country.

Domestic Price

The price of goods or services within a country's domestic market, potentially influenced by tariffs, taxes, and supply and demand.

Tariff

A tax imposed on imported goods, usually to protect domestic businesses and market from foreign competition.

Liberalization

The process of reducing government regulations and restrictions in an economy to encourage more business activities and investments.