In the Short Run, There Are 500 Identical Firms in a Competitive

question 49

Multiple Choice

In the short run, there are 500 identical firms in a competitive market. The firms do not use any resources that are available in limited quantities, and each of them has the following cost structure: Which of the following is a point on the long-run supply curve?

• A) P=$10, Q=500.
• B) P=$6, Q=1,000.
• C) P=$5, Q=500.
• D) P=$5, Q=1,500.

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Definitions:

Thomas Malthus

An English economist and demographer known for his theory that population growth will always tend to outrun the food supply.

Food Supplies

The availability and distribution of edible goods and commodities to meet the consumption needs of the population.

Evolutionary Mechanism

A process by which variations in the genetic material of organisms lead to differences in traits that can affect an organism's survival and reproduction.

Natural Selection

The mechanism where organisms that are more suited to their environment are more likely to survive and reproduce, playing a crucial role in evolution.