Suppose the Table Above Represents the Long-Run Cost Structure for a Firm

question 160

Multiple Choice

Suppose the table above represents the long-run cost structure for a firm in a perfectly competitive industry. Based on this information we can conclude that this firm operates in

• A)an industry incapable of reaching long-run equilibrium.
• B)a constant-cost industry.
• C)an increasing-cost industry.
• D)a decreasing- cost industry.

---

Definitions:

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market.

Economic Efficiency

A state where resources are allocated in the most beneficial way for society, maximizing productivity while minimizing waste and inefficiency.

Brand Loyalty

The tendency of consumers to continuously purchase products from the same brand instead of switching to competitors.

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market or industry.