Suppose That a Competitive Market Is Initially in Equilibrium

question 229

Multiple Choice

Suppose that a competitive market is initially in equilibrium. Then demand increases. If some resources used in production are not available in sufficient quantities for entering firms,

• A)the long-run market supply curve will be upward sloping.
• B)the long-run market supply curve will be perfectly elastic.
• C)in the long run firms will suffer economic losses, leading them to exit the industry.
• D)the number of firms will decrease, and the market will become a monopoly.

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Definitions:

Redundant Outcome

A result or conclusion that is unnecessarily repetitive or more than what is needed, often without adding value.

Observable Communication

The aspects of communication that can be seen or heard directly, such as body language or tone of voice.

Repetitive Loop

A cycle of repeated actions, behaviors, or thoughts that individuals or systems may become stuck in, making it difficult to progress or change.

Nonintimate-aggressive Relationships

Relationships characterized by a lack of closeness or affection, combined with hostile or aggressive interactions.