Define the Three Dimensions of Trustworthiness

question 27

Essay

Define the three dimensions of trustworthiness. Provide examples of each.

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Definitions:

Increasing-Cost Industry

An industry in which expansion through the entry of new firms raises the prices firms in the industry must pay for resources and therefore increases their production costs.

Long-Run Supply Curve

As it applies to macroeconomics, a supply curve for which price, but not real output, changes when the demand curves shifts; a vertical supply curve that implies fully flexible prices.

Perfectly Elastic

Describes a situation in which the quantity demanded or supplied changes infinitely with any change in price.

Pure Competition

A market structure characterized by a large number of buyers and sellers dealing in perfectly substitutable goods or services.