As the Number of Firms in an Industry Grows, Price

question 10

Multiple Choice

As the number of firms in an industry grows, price will move toward

• A) average fixed cost
• B) marginal cost
• C) the amount of capital investment, K

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Definitions:

Repay Borrowed

The act of returning money that was borrowed from a person or institution.

Equity Financing

A method of raising capital through the sale of shares in a company, thereby giving investors ownership interests.

Venture

A business enterprise involving risk in expectation of gain.

Co-Owner

An individual or entity that shares ownership of an asset, property, or business with one or more parties.