A Perfectly Competitive Firm in a Constant-Cost Industry Produces 3,000

question 211

Multiple Choice

A perfectly competitive firm in a constant-cost industry produces 3,000 units of a good at a total cost of $36,000.The prevailing market price is $15.What will happen to the number of firms in the industry and to the industry's output in the long run?

• A)The number of firms and the industry's output increase.
• B)The number of firms and the industry's output decrease.
• C)The number of firms remains constant and the industry's output increases.
• D)The number of firms remains constant and the industry's output decreases.

---

Definitions:

Rotational Slide

A type of landslide that occurs along a curved surface, causing the land mass to rotate outward from the slope.

Debris Flow

A rapid downhill movement of a mixture of water, rock, soil, and organic matter, often triggered by heavy rain.

Rock Avalanche

A rapid, massive descent of rock debris and soil down a slope, often without a clear water component.

Sedimentary Layers

Strata or beds of sedimentary rock that have been deposited over time, often horizontally.