How Old Is Siri

question 5

Multiple Choice

How old is Siri?

• A) 15
• B) 18
• C) 20
• D) 21

Describe the effects of market demand changes on the price and output of a perfectly competitive industry in the short and long run.

Identify and explain the role of the industry supply curve in the context of perfect competition.

Analyze the conditions for long-run equilibrium in a perfectly competitive market, including the zero economic profit condition.

Explain the role of entry and exit of firms in achieving long-run equilibrium in a perfectly competitive market.

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Definitions:

Positive Externalities

Benefits that are enjoyed by a third-party or the broader society as a result of an economic transaction or activity, without them directly participating in it.

Public Good

A good or service that is characterized by nonrivalry and nonexcludability. These characteristics typically imply that no private firm can break even when attempting to provide such products. As a result, they are often provided by governments, who pay for them using general tax revenues.

Federal Government

The national government of a federated state, which shares sovereignty with its subnational entities and is typically responsible for national defense, foreign affairs, and federal law.

Marginal Benefit

The increase in satisfaction or utility that a person receives from consuming an additional unit of a good or service.