An Increase in Demand in a Perfectly Competitive Industry Characterized

question 81

Multiple Choice

An increase in demand in a perfectly competitive industry characterized by constant costs will cause a(n) :

• A) permanent increase in price.
• B) economic loss for firms.
• C) increase in the quantity supplied in the short run and an increase in market supply in the long run.
• D) decrease in firms' marginal revenue.

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Definitions:

Distributes The Assets

The process of allocating a deceased person's property and assets according to their will or the law in cases of intestacy.

Firm's Existence

The legal status of a company as an entity that can exercise legal rights, fulfill obligations, and face liabilities independently from its owners.

Dissolve

The process of legally ending the existence of a corporation, partnership, or other formal business entity.

Apparent Authority

A situation where a third party reasonably believes that someone has the authority to act on behalf of an organization, even if they do not.