In the Short Run, There Are 500 Identical Firms in a Competitive

question 25

Multiple Choice

In the short run, there are 500 identical firms in a competitive market. The firms do not use any resources that are available in limited quantities, and each of them has the following cost structure: The long-run supply curve for this market is

• A) positively sloped for all prices above $10.
• B) horizontal at a price of $5.
• C) horizontal at a price of $6.
• D) horizontal at a price of $7.

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Definitions:

Charisma

A personal quality characterized by the ability to attract, influence, and inspire others through personal charm or appeal.

Innovation

The process of introducing new ideas, products, or methods to improve efficiency, effectiveness, or competitive advantage.

Economic Value

The worth of a good or service determined by the market, reflecting its ability to satisfy human needs or wants.

Contingency Approaches

Management theories suggesting that the best leadership or organizational practices depend on the specifics of the situation.