When Entry and Exit Behavior of Firms in an Industry

question 143

Multiple Choice

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

• A)the long-run market supply curve must be horizontal.
• B)the long-run market supply curve must be upward-sloping.
• C)the long-run market supply curve must be downward-sloping.
• D)we do not have sufficient information to determine the shape of the long-run market supply curve.

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Definitions:

Self-reward

A process where individuals give themselves a reward or positive reinforcement upon achieving a goal or completing a task.

Behaviourism

A psychological theory that studies observable behavior as the primary source of scientific information, disregarding the importance of mental states.

Objectively Observed

A manner of observation that is based on unbiased facts and evidence, devoid of personal feelings, interpretations, or prejudice.

Structuralism

An approach in psychology and sociology that explores the elements of human culture, thought, and experience, emphasizing the idea of underlying structures.