Suppose When a Market Has Four Firms,average Economic Profit Is

question 156

Multiple Choice

Suppose when a market has four firms,average economic profit is $1,000 per month.When the market has five firms,the average economic profit is -$50 per month.This suggests that

• A) the long-run equilibrium number of firms is between four and five.
• B) the long-run equilibrium number of firms is four.
• C) the long-run equilibrium number of firms is five.
• D) there is no long-run equilibrium in this market as profits can never be zero.

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Definitions:

Glossopharyngeal

Relating to the ninth cranial nerve, which innervates parts of the tongue and pharynx, affecting taste and swallowing.

Sensory Information

Data received by sensory organs and transmitted to the brain for processing and interpretation.

Hypoglossal

Relating to the hypoglossal nerve, which controls the muscles of the tongue and is crucial for speech, swallowing, and tongue movement.

Accessory

An additional item or product that enhances or contributes to the utility or aesthetics of the primary product.