Assume That All Firms in This Industry Have Identical Cost

question 19

Multiple Choice

Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive. In the long run, there will be ______ firms in this market.

• A)10
• B)15
• C)25
• D)50

---

Definitions:

Budgeting

The process of creating a plan to spend your money over a certain period, allocating funds to various activities or departments.

Customers Served

The number of unique clients or customers that a business or service has provided for over a specific period.

Revenue Variance

The variance between projected revenue and the actual income received.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.