A Perfectly Competitive Firm in a Constant-Cost Industry Produces 1000

question 111

Multiple Choice

A perfectly competitive firm in a constant-cost industry produces 1000 units of a good at a total cost of $50 000.The prevailing market price is $48.Assuming that this firm continues to produce in the long run,what happens to its output level in the long run?

• A) The firm's output falls.
• B) The firm's output increases.
• C) The firm produces the same output level.
• D) There is insufficient information to answer the question.

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Definitions:

ERISA Fiduciary Advisor

A financial advisor who is required by the Employee Retirement Income Security Act to act in the best interest of participants in retirement plans.

Long-Term Disability Insurance

Insurance that pays a percentage of a disabled employee's salary after an initial period and potentially for the rest of the employee's life.

Short-Term Disability Coverage

Insurance that provides a portion of an employee’s salary if they are temporarily unable to work due to injury, illness, or childbirth.

Competitive Advantage

The ability of a company to achieve and maintain a superior position over its competitors, often through quality, innovation, cost, or customer service.