If Firms in a Competitive Market Are Not Identical,then an Increase

question 10

Multiple Choice

If firms in a competitive market are not identical,then an increase in cost will

• A) shift marginal cost to the right.
• B) push the most inefficient firms out of the market.
• C) push the most efficient firms out of the market.
• D) Need more information.

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Definitions:

Foreign Exchange

The marketplace for trading currencies, enabling conversion from one currency to another, essential for global trade and investment.

Black Market

An illegal trading environment where goods or services are exchanged in violation of government regulations.

Equilibrium

Equilibrium is a state in which market supply and demand balance each other, and as a result, prices become stable.

Tax on Imports

Levies placed by a government on goods coming into the country, often used to protect domestic industries or generate revenue.