Figure 13-13 -Refer to Figure 13-13.If the Diagram Represents a Typical Firm

question 23

Multiple Choice

Figure 13-13

-Refer to Figure 13-13.If the diagram represents a typical firm in the market, what is likely to happen in the long run?

• A)Some firms will exit the market causing the demand to increase for firms remaining in the market.
• B)New firms will enter the market causing the demand to decrease for existing firms.
• C)Inefficient firms will exit the market and new cost-efficient firms will enter the market.
• D)Competition will be intensified as firms strive to make long-run profits.

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Definitions:

Habituation Response

A decrease in response to a stimulus after repeated exposure, an elementary form of learning or adaptation.

Axoaxonic

Pertains to the type of synaptic connection where an axon terminal of one neuron connects to the axon of another neuron.

Dendrodendritic

Relating to, or denoting synaptic connections between the dendrites of two neurons.

Axodendritic

Pertaining to the connection between the axon of one neuron and the dendrite of another, facilitating the transmission of nerve impulses.