The Following Graphs Depict a Perfectly Competitive Firm and Its

question 57

Multiple Choice

The following graphs depict a perfectly competitive firm and its market.
Assume that all firms in this industry have identical cost functions.
Assume that the market is currently as shown in the graph on the left .What is true of the number of firms?

• A) There are currently 30 firms in the industry,and that number will remain stable until there is a change in demand or in technology.
• B) There are currently ten firms in this industry,and that number will remain stable until there is a change in demand or in technology.
• C) It is impossible to tell how many firms currently exist in this industry,but you can tell that the number of firms is likely to increase in the near future.
• D) There are currently ten firms in this industry,and that number is likely to increase in the near future.

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Definitions:

Business Portfolio Model

A strategic tool used by businesses to categorize and evaluate different segments, projects, or investments within the company based on factors like profitability, risk, and growth potential.

Strategic Business Units

Organizational entities within larger corporations, operating with their own mission, vision, and resources, focused on market needs.

Web-Based System

Software applications that operate over the internet and can be accessed through web browsers, simplifying access and use.

Customer Value

The customer's view of a product or service's worth relative to other choices they might have.