In a Perfectly Competitive Market in Which Identical Firms Face

question 218

Multiple Choice

In a perfectly competitive market in which identical firms face the same horizontal marginal cost curve, if demand increases, then the amount of consumer surplus will

• A) increase.
• B) decrease.
• C) become negative.
• D) not change.

---

Definitions:

Compensating

The use of a strength to make up for a real or perceived weakness.

Low Self-esteem

A condition characterized by a lack of confidence and feeling badly about oneself.

Locus of Control

A psychological concept that refers to an individual's belief about the extent to which their actions influence the outcomes of their life.

Self-esteem

An individual's subjective evaluation of their own worth, encompassing beliefs and emotions about oneself.