A Perfectly Competitive Firm in a Constant-Cost Industry Produces 3,000

question 211

Multiple Choice

A perfectly competitive firm in a constant-cost industry produces 3,000 units of a good at a total cost of $36,000.The prevailing market price is $15.What will happen to the number of firms in the industry and to the industry's output in the long run?

• A)The number of firms and the industry's output increase.
• B)The number of firms and the industry's output decrease.
• C)The number of firms remains constant and the industry's output increases.
• D)The number of firms remains constant and the industry's output decreases.

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Definitions:

Binge Meal

A pattern of eating where large amounts of food are consumed in a short period, often associated with feelings of loss of control over eating.

Steak

A slice of meat, typically beef, that is usually grilled, pan-fried, or broiled.

Emotion

A state involving physiological arousal, a cognitive appraisal of the situation that produced the state, and an outward behavior expressing the state.

To Move

The act of changing physical location or position, or of causing something to change its place or position.