Refer to the Diagrams, Which Pertain to a Purely Competitive

question 100

Multiple Choice

Refer to the diagrams, which pertain to a purely competitive firm producing output q and the industry in which it operates. In the long run we should expect

• A)firms to enter the industry, market supply to rise, and product price to fall.
• B)firms to leave the industry, market supply to rise, and product price to fall.
• C)firms to leave the industry, market supply to fall, and product price to rise.
• D)no change in the number of firms in this industry.

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Definitions:

Extreme Poverty

A condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education, and information. It depends not only on income but also access to services.

Basic Human Needs

Fundamental requirements necessary for individuals to live a healthy and comfortable life, including food, water, shelter, and clothing.

Industrially Advanced

Pertains to countries or regions with highly developed industries, including large manufacturing and technology sectors, contributing to strong economic growth.

Trade Barriers

Measures implemented by countries to restrict or control international trade, such as tariffs or quotas.