When Firms in a Competitive Market Have Different Costs, It

question 63

Multiple Choice

When firms in a competitive market have different costs, it is likely that

• A)free entry and exit in the market will be violated.
• B)the market will no longer be considered competitive.
• C)long-run market supply will be downward sloping.
• D)some firms will earn positive economic profits in the long run.

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Definitions:

Sympatric Speciation

The process by which new species evolve from a single ancestral species while inhabiting the same geographic region.

Reproductive Isolation

Reproductive isolation occurs when reproductive barriers prevent or strongly limit reproduction between populations. The result is that few or no genes are exchanged between the populations.

Metapopulations

A group of spatially separated populations of the same species which interact at some level.

Evolutionary History

The chronological sequence of biological changes in populations or organisms over time, leading to the diversity of species seen today.