An Increase in the Price of an Input to a Perfectly

question 1

Multiple Choice

An increase in the price of an input to a perfectly competitive industry will:​

• A)​increase price and reduce the number of firms.
• B)​increase price and increase the number of firms.
• C)​increase price and have an ambiguous effect on the number of firms.
• D)​reduce the number of firms and have an ambiguous effect on price.

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Definitions:

Action Plan

A detailed outline of the steps, tasks, and resources required to achieve specific goals or objectives.

Overall Schedule

A comprehensive plan that outlines all planned activities and their timelines in a project or operation.

Economics

The social science that studies how individuals, governments, firms, and nations make choices on allocating resources to satisfy their wants and needs.

Business Model

A strategic plan outlining how a company creates, delivers, and captures value, essentially explaining how it operates and makes money.