Figure 8.11 -Refer to Figure 8.11.Suppose the Prevailing Price Is P₁ and Is

question 256

Multiple Choice

Figure 8.11
-Refer to Figure 8.11.Suppose the prevailing price is P₁ and the firm is currently producing its loss-minimising quantity.In the long-run equilibrium

• A)there will be fewer firms in the industry and total industry output decreases.
• B)there will be more firms in the industry and total industry output increases.
• C)there will be fewer firms in the industry but total industry output increases.
• D)there will be more firms in the industry and total industry output remains constant.

---

Definitions:

Dishabituation

Increase in responsiveness after presentation of a new stimulus.

Habituation

The method through which a person becomes used to a stimulus by being exposed to it multiple times, resulting in a reduced reaction.

Perceptual Skills

Abilities related to the interpretation of sensory input, such as recognizing patterns, objects, and spatial relationships.

Dishabituation

A renewal of response in a habituated organism following the presentation of a novel stimulus.