If Many Firms Enter the Computer Software Industry and Consequently

question 96

Multiple Choice

If many firms enter the computer software industry and consequently bid up the price of programmers, then

• A) the long-run industry supply curve will slope upward.
• B) the long-run industry supply curve will slope downward.
• C) there will be a downward shift of the SRATC curve.
• D) the average fixed cost curve will slope upward.

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Definitions:

Entrepreneur

An individual who creates, organizes, and operates a business or businesses, taking on financial risk to do so.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes.

Limited Incomes

Economic condition where individuals or households have restricted earnings, impacting their spending capabilities and living standards.

Households

The individuals or group of people living together in the same dwelling and functioning as a single decision-making economic unit, typically sharing income and expenses.