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:

Conclusion

The end or finish of an event, process, or text, often summarizing the main points or outcomes.

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The ability of an individual to understand and participate in legal proceedings, or to make legally recognized decisions.

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A lawyer who represents a defendant in legal proceedings, protecting their rights and interests.

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