Suppose That (1)LRATC Is Minimized at $60 When 30,000 Units

question 8

Multiple Choice

Suppose that (1) LRATC is minimized at $60 when 30,000 units are being produced,(2) the quantity demanded at a price of $60 is 150,000 units,and (3) there are currently 10 firms producing in the market.Then,

• A)we should expect competition to result in a decrease in the number of firms
• B)we should expect a natural monopoly to emerge
• C)we should expect some existing firms to divide up into smaller firms.
• D)the LRATC curve will shift upward in the long run
• E)the LRATC curve will shift downward in the long run.

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Definitions:

Anuria

A medical condition characterized by the failure of the kidneys to produce urine.

Hematuria

The presence of blood in urine, which can indicate urinary tract infections, kidney stones, or more serious conditions like cancer.

Urine

A liquid by-product of metabolism in the body, expelled through the urinary system; it consists of urea, water, salts, and other waste compounds.

Urine Specimen

A sample of urine collected for diagnostic purposes to test for various diseases, conditions, or drug usage.