Assume That All Firms in This Industry Have Identical Cost

question 85

Multiple Choice

Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive. If the market supply curve is given by S1, then in the long run firms will:

• A)enter the market, leading the market supply curve to shift out to S3.
• B)enter the market, leading the market supply curve to shift out to S2.
• C)exit the market, leading the market supply curve to shift out to S2.
• D)neither enter nor exit the market, so the market supply curve will remain at S1.

---

Definitions:

Tears

A saline fluid produced by the lacrimal glands, serving both emotional and lubricative functions for the eyes.

Secondary Emotion

Emotions that develop with more cognitive processing and social learning, such as guilt or shame, as opposed to primary emotions like happiness or fear.

Remorseful

Feeling deep regret or guilt for a wrongdoing, similar to being penitent or contrite.

Remorse

A deep feeling of regret or guilt for a wrong committed, often accompanied by a desire to amend or repair the harm caused.