Suppose That a Competitive Market Is Initially in Equilibrium

question 510

Multiple Choice

Suppose that a competitive market is initially in equilibrium. Then demand increases. If entering firms face the same costs as existing firms and sufficient resources are available for entering firms,

• A)the long-run market supply curve will be upward sloping.
• B)the long-run market supply curve will be perfectly elastic.
• C)in the long run firms will suffer economic losses, leading them to exit the industry.
• D)the number of firms will decrease, and the market will become a monopoly.

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Definitions:

Authoritarian Leaders

Leadership style characterized by individual control over all decisions with little input from group members, often involving strict rules and regulations.

Assertive Risk Takers

Individuals who confidently engage in actions that involve risk, often with the belief that they can positively influence the outcome.

Authentic Leadership

Authentic leadership is a leadership style characterized by self-awareness, integrity, transparency, and a focus on building trust with followers.

First- And Middle-Level Managers

Managers who oversee the day-to-day operations and are responsible for executing the policies and plans developed by upper management.