A Perfectly Competitive Firm in a Constant-Cost Industry Produces 3,000

question 211

Multiple Choice

A perfectly competitive firm in a constant-cost industry produces 3,000 units of a good at a total cost of $36,000.The prevailing market price is $15.What will happen to the number of firms in the industry and to the industry's output in the long run?

• A)The number of firms and the industry's output increase.
• B)The number of firms and the industry's output decrease.
• C)The number of firms remains constant and the industry's output increases.
• D)The number of firms remains constant and the industry's output decreases.

---

Definitions:

Buffer

Mixture of an acid and a base that reduces any changes in pH that would otherwise occur in a solution when acid or base is added to the solution.

Hemoglobin

A red protein responsible for transporting oxygen in the blood of vertebrates, giving red blood cells their color.

Pontine Respiratory Neurons

Neurons located in the pons of the brainstem that play a critical role in regulating the rhythm of breathing.

Medulla Oblongata

The lowest part of the brainstem, connecting the brain to the spinal cord and controlling vital functions such as breathing and heart rate.