The Figure Below Depicts the Short-Run Market Equilibrium in a Perfectly

question 90

Multiple Choice

The figure below depicts the short-run market equilibrium in a perfectly competitive market and the cost curves for a representative firm in that market. Assume that all firms in this market have identical cost curves. Given that the current equilibrium price is $8, what will happen to the number of firms in this market in the long run?

• A)The number of firms in the market will not change unless there is a change in either demand or in the cost of production.
• B)The number of firms in the market will fall as firms exit the market in response to negative economic profit.
• C)It is impossible to determine whether the number of firms in this market will rise or fall.
• D)The number of firms in the market will rise as firms enter the market in response to positive economic profit.

Understand the impact of organizational practices on diversity and discrimination in hiring.

Recognize the importance of employee referrals and their potential effects on organizational diversity.

Identify effective strategies for engaging passive job seekers.

Understand the significance of realistic job previews in the recruitment process.

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Definitions:

Net Present Value

A calculation used to assess the profitability of an investment, considering the difference between the present value of cash inflows and outflows over a period of time.

Internal Rate of Return

A financial metric used to evaluate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Net Present Value

An economic metric that evaluates the gap between the present value of cash inflows and outflows across a designated period.

Cash Flow Estimates

Projected amounts of cash inflows and outflows over a certain period that help businesses plan for investments, operational needs, and debt repayment.