Suppose That There Are 1,000 Firms in a Perfectly Competitive

question 23

Multiple Choice

Suppose that there are 1,000 firms in a perfectly competitive industry, each with a short-run total cost curve given by TC = 800 + 8Q + 0.1Q² and marginal cost curve given by MC = 8 + 0.2Q. Assuming no other factors change, in the long-run we expect this industry to ____.

• A) expand, as firms enter the market
• B) expand, as firms increase their production
• C) contract as firms exit the market
• D) have no change

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Definitions:

Organization

A structured group of people collaborating to achieve common goals, characterized by established roles, rules, and systems.

Negotiation

A process by which parties with differing interests reach a mutual agreement through dialogue and compromise.

Influence Activity

Actions or behaviors aimed at affecting or changing others' perspectives, decisions, or actions.

Coercive

Relating to or using force or threats to persuade someone to do something or to achieve compliance.