Which of the Following Will Increase a Perfectly Competitive Seller's

question 4

Multiple Choice

Which of the following will increase a perfectly competitive seller's short-run supply and shift the firm's short-run supply curve rightward?

• A) an increase in the market price
• B) a decrease in average fixed costs
• C) a decrease in marginal cost
• D) Both answers A and B are correct.
• E) Both answers A and C are correct.

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Definitions:

Market Exit

The process of a company stopping its business operations or leaving a market, often due to unprofitability or strategic realignment.

Concentrated Industry

An industry characterized by a few firms controlling a large market share, leading to reduced competition.

Relatively Small

A comparative term indicating that something is smaller in size, amount, or degree when compared to others in a similar context.

Number of Firms

This refers to the total count of businesses operating within a specific market or industry.