Suppose That a Competitive Firm Finds That in Its Short-Run

question 138

True/False

Suppose that a competitive firm finds that in its short-run equilibrium situation, its marginal cost is higher than its average total cost. If things are not expected to change and there are constant returns to scale, then the firm will exit the industry in the long run.

---

Definitions:

Total Fertility Rate

The average number of children a woman is expected to have over her lifetime, a key demographic indicator of population growth.

Life Expectancy

Life expectancy is the average number of years that a group of individuals of the same age is expected to live, based on current mortality statistics.

Population Growth

The increase in the number of individuals in a population due to births outpacing deaths or through migration.

Demographic Data

Information collected about the characteristics of human populations, such as age, gender, income, and education.