A Sudden Increase in the Market Demand in a Competitive

question 4

Multiple Choice

A sudden increase in the market demand in a competitive industry leads to

• A)Losses in the short-run and average profits in the long-run
• B)Above average profits in the short-run and average profits in the long-run
• C)New firms being attracted to the industry
• D)Demand creating supply

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Definitions:

Palmitic Acid

A saturated fatty acid found in fats and waxes including olive oil, palm oil, and body lipids, known scientifically as hexadecanoic acid.

Stearic Acid

A saturated fatty acid found in various animal and plant fats, used in the manufacturing of detergents, soaps, and cosmetics.

Linoleic Acid

A polyunsaturated omega-6 fatty acid important in human diet and cell structure.

Unsaturated Fatty Acid

A type of fatty acid that contains one or more double bonds in its hydrocarbon chain, affecting its melting point and health implications.