Scenario: There Are Several Pen Manufacturers in Corinthia

question 225

Multiple Choice

Scenario: There are several pen manufacturers in Corinthia. However, the pens sold by each manufacturer have a unique design.
-Refer to the scenario above.How will the demand for pens faced by the existing pen manufacturers in Corinthia be affected if new firms enter the industry in the long run?

• A) The demand curve faced by the existing firms will become perfectly inelastic.
• B) The demand curve faced by the existing firms will become perfectly elastic.
• C) The demand faced by the existing firms will increase.
• D) The demand faced by the existing firms will decrease.

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Urban

Pertaining to a city or town, often characterized by higher population density and vast human features in comparison to areas outside of cities.

Industrial Societies

Societies characterized by the predominance of manufacturing and other forms of production where mechanization plays a significant role.

Class Differences

The distinctions that exist between various social classes, often highlighted by disparities in income, education, and cultural norms.

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Social groups situated at the top of the social hierarchy, often associated with wealth, power, and privilege.