If the Long-Run Supply Curve in a Perfectly Competitive Industry

question 108

Multiple Choice

If the long-run supply curve in a perfectly competitive industry is downward-sloping, then the market is characterised by:

• A) decreasing input costs.
• B) increasing input costs.
• C) increasing or decreasing input costs.
• D) constant input costs.

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Definitions:

Fast-Food Restaurant

A type of restaurant that offers quick service, convenience, and food that is prepared and served quickly to the customer, often at a lower cost compared to full-service establishments.

Tightly Controlled Conditions

Environments or experiments where variables are strictly managed to ensure accurate and consistent results.

Cause And Effect

A principle signifying that an action or phenomenon invariably leads to or results in another, typically used to explain causality in events or processes.

Manipulating Factors

Variables that researchers or experimenters actively change or control to observe their effects on other variables.