Suppose That All Firms in a Given Industry Have the Same

question 38

Multiple Choice

Suppose that all firms in a given industry have the same supply curve given by S_i(p) = 2p when p is greater than or equal to $2 and S_i(p) = 0 when p is less than $2.Suppose that market demand is given by D(p) = 12 - p.If firms continue to enter the industry so long as they can do so profitably, the equilibrium price must be closest to

• A)$5.
• B)$4.
• C)$2.40.
• D)$2.
• E)$1.75.

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Definitions:

Valued Diversity

The appreciation and incorporation of differences in aspects such as culture, experience, and perspective within a group or organization.

Workforce Creativity

The innovation and creative problem-solving abilities possessed by employees within an organization.

Knowledge and Skill

The understanding, awareness, or familiarity gained through education or experience, and the ability to do something well.

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Describes values, practices, or behaviors that are dependent on or vary according to cultural context.