A Perfectly Competitive Industry with Constant Costs Initially Operates in Long-Run

question 158

Multiple Choice

A perfectly competitive industry with constant costs initially operates in long-run equilibrium.When demand increases:

• A)in the short run,prices and profits will be higher,but in the long run,price will fall back to its original level and firms will again earn zero economic profit.
• B)prices and profits will be higher than before the demand increase in both the long run and the short run.
• C)in the short run,prices and profits will fall,but in the long run,price will rise back to its initial level,as will profits.
• D)prices and profits will be lower than before the demand increase in both the long run and the short run.

Learn about the different factors influencing the choice of distribution methods, including cost, location, privacy, and security.

Grasp the importance of considering nonverbal communication in document delivery.

Recognize the myths and effective practices of proofreading techniques.

Identify the issues involved in distributing messages effectively.

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Definitions:

Truth in Lending Act

A U.S. federal law designed to promote informed use of consumer credit by requiring disclosures about its terms and costs.

Truth in Savings Act

A federal law designed to promote fairness and transparency in the savings account practices of banks and other financial institutions.

Farmland

Agricultural land used primarily for the purpose of growing crops and, sometimes, raising livestock.

Compound Interest

Interest calculated on the initial principal of a deposit or loan, as well as on the accumulated interest of previous periods, leading to exponential growth of the amount over time.