If a Purely Competitive Firm Is in Short-Run Equilibrium and Its

question 52

Multiple Choice

If a purely competitive firm is in short-run equilibrium and its marginal cost exceeds its average total cost,we can conclude that:

• A) this is a decreasing-cost industry.
• B) this is an increasing-cost industry.
• C) firms will exit the industry in the long run.
• D) firms will enter the industry in the long run.

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Definitions:

Calcitonin

A hormone produced by the thyroid gland that lowers blood calcium levels by promoting calcium deposit in the bones.

Glucagon

A substance created by the pancreas that increases glucose levels in the blood by encouraging the conversion of glycogen into glucose in the liver.

Glucose Levels

The concentration of glucose present in the blood, an important indicator of metabolic health.

Communication Model

A theoretical framework that describes the process of transferring information from a sender to a receiver, highlighting the components and barriers involved.