Consider a Competitive Market with a Large Number of Identical

question 195

Multiple Choice

Consider a competitive market with a large number of identical firms. The firms in this market do not use any resources that are available only in limited quantities. In long-run equilibrium, market price is determined by

• A)the minimum point on the firms' average variable cost curve.
• B)the minimum point on the firms' average total cost curve.
• C)the portion of the marginal cost curve below average variable cost.
• D)a firm's level of sunk costs.

---

Definitions:

Visual Images

Mental representations of objects, scenes, or events that are not physically present, often used in cognitive and perceptual psychology.

Manipulate

To skillfully handle, control, or use something, often with the connotation of unfairness or deceit.

Sensory Modalities

Different forms of sensory perceptions, such as sight, sound, touch, taste, and smell, through which humans and animals perceive the world.

Smell

A sense that detects odors or scents, which is mediated by specialized sensory cells in the nasal cavity.