-If the Firm Represented in Figure 11-7 Is Typical of Other

question 58

Multiple Choice

-If the firm represented in Figure 11-7 is typical of other firms in the industry,then,as the long run approaches,

• A)some firms will exit,and the demand curves facing the remaining firms will shift to the left
• B)some firms will exit,and the demand curves facing the remaining firms will shift to the right
• C)some firms will enter,and the demand curves facing the remaining firms will shift to the left
• D)some firms will enter,and the demand curves facing the remaining firms will shift to the right
• E)the industry will eventually disappear

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Definitions:

Output

The total amount of goods or services produced by an individual or entity in a given period.

Function

In mathematics, a relation or expression involving one or more variables, where each input value yields one and only one output value.

Production Function

A mathematical model that describes the relationship between the quantity of output produced and the quantities of inputs used in production.

Returns To Scale

An economic concept describing how the output changes in response to a proportional change in all input factors.