Suppose a Competitive Market Is Comprised of Firms That Face

question 31

Multiple Choice

Suppose a competitive market is comprised of firms that face identical cost curves.The firms experience an increase in demand that results in positive profits for the firms.Which of the following events are then most likely to occur?

• A) (i)and (ii)only
• B) (i)and (iii)only
• C) (ii)and (iii)only
• D) (i),(ii)and (iii)

---

Definitions:

Public Relations Tools

Techniques and methods used by individuals and organizations to communicate with the public and promote positive perceptions and understandings.

Value Proposition

A statement that summarizes why a consumer should choose a company's product or service, highlighting the unique value it provides.

Legal Liability

Refers to being subject to legal obligations, often involving the requirement to compensate for damages or to fulfill contractual agreements.

Social Benefit

A positive impact on society, achieved through various means, including economic, educational, health, and environmental improvements.