The Graphs Are for a Purely Competitive Market in the Short

question 22

Multiple Choice

The graphs are for a purely competitive market in the short run. The graphs suggest that in the long run, assuming no changes in the given information,

• A)some firms will exit from this industry.
• B)more buyers will come to the market.
• C)new firms will be attracted into the industry.
• D)buyers will leave the industry.

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Definitions:

Insulin

A hormone produced by the pancreas that helps regulate blood glucose levels by facilitating the uptake of glucose by cells.

Adrenal Cortex

The outer portion of the adrenal gland that produces steroid hormones including cortisol and aldosterone.

Glucagon

A hormone produced by the pancreas that raises blood glucose levels, acting as a counter-regulatory hormone to insulin.

Progesterone

A steroid hormone released by the corpus luteum and important in the regulation of reproduction, preparing the uterus for implantation of a fertilized egg and maintaining pregnancy.