Which of the following changes will not affect the market supply or the market demand in a purely competitive industry?
A)a change in fixed costs
B)a change in the number of buyers
C)a change in marginal costs
D)a change in the number of firms

Question

Quizplus · Accepted Answer

A change in fixed costs does not affect the market supply or demand directly in the short run because it does not alter the marginal cost of production, which is the primary determinant of the quantity supplied by firms in the market. Changes in the number of buyers, marginal costs, and the number of firms directly impact market demand or supply.

Which of the Following Changes Will Not Affect the Market