In a Perfectly Competitive Industry, Assume There Is a Permanent

question 124

Multiple Choice

In a perfectly competitive industry, assume there is a permanent increase in demand for a product. The process of transition to a new long-run equilibrium will include:

• A) the exit of firms.
• B) temporarily lower production costs.
• C) both a and b.
• D) neither a nor b.

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Definitions:

Ant Colonies

Ant colonies refer to the complex and highly organized social structures built and inhabited by ants, often characterized by a division of labor, cooperation, and sophisticated communication systems.

Fertile Queens

Female monarchs or matriarchs in insect colonies, especially in bees, ants, and termites, that are responsible for reproducing and increasing the colony's population.

Low Self-Esteem

A condition characterized by an individual's persistent belief in their lack of worth and capabilities.

Intrinsic Motivated

Intrinsically motivated describes when one engages in an activity for the inherent satisfaction or pleasure derived from the activity itself, rather than for some separable outcome.