When Entry and Exit Behaviour of Firms in an Industry

question 149

Multiple Choice

When entry and exit behaviour of firms in an industry does not affect a firm's cost structure:

• A)the long-run market supply curve must be upward-sloping
• B)the long-run market supply curve must be downward-sloping
• C)the long-run market supply curve must be horizontal
• D)we can't tell anything about the shape of the long-run market supply curve

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Definitions:

Cultural Variation

Differences in beliefs, behaviors, and practices among various groups or societies due to cultural factors.

Causal Events

Events that directly lead to the occurrence of another event, indicating a cause-and-effect relationship.

Complex Interactions

The multifaceted and reciprocal influences between different factors or entities, often leading to unpredictable outcomes.

Ripple Effect

The continuing and spreading results of an event or action, analogous to the ripples expanding across water when an object is dropped into it.