Suppose the Long-Run Supply Curve for a Good Is Upward-Sloping

question 225

Multiple Choice

Suppose the long-run supply curve for a good is upward-sloping. The upward slope could be explained by

• A)increases in production costs resulting from more firms coming into the market.
• B)a breakdown of the "free entry and exit" feature of competition.
• C)a breakdown of the "price taking" feature of competition.
• D)a stable demand curve for the good, that is, a demand curve that never shifts.

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Definitions:

Per Capita Energy Consumption

The average amount of energy used per person within a specific area or country.

World Population

The total number of humans currently living on Earth, often estimated and subject to change due to birth rates, death rates, and migration patterns.

Population Growth Rate

The rate at which the number of individuals in a population increases in a given time period, typically expressed as a percentage of the population.

Per Capita Incomes

Per capita incomes represent the average income earned per person in a specific area, calculated by dividing the area's total income by its population, indicating the general wealth of the population.