Assume That All Firms in This Industry Have Identical Cost

question 73

Multiple Choice

Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive. If the market supply curve is given by S3, then what will happen to the market supply curve in the long run?

• A)It will stay at S3, but the quantity supplied will increase.
• B)It will shift to S2.
• C)It will shift to S1.
• D)It will stay at S3, but the quantity supplied will decrease.

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Definitions:

Richard Atkinson

An influential psychologist known for his research on memory and learning, and for developing a model of human memory with Richard Shiffrin.

Richard Shiffrin

A psychologist known for his work on memory, including the development of the multi-store model of memory with Richard Atkinson.

Meaningful Patterns

Coherent sequences or configurations that are significant or have a purpose, often identified through the analysis of data or observations.

Large Datasets

Collections of data that are so large and complex that traditional data processing applications are inadequate.