Suppose That a Competitive Market Is Initially in Long-Run Equilibrium

question 92

Multiple Choice

Suppose that a competitive market is initially in long-run equilibrium. Which of the following are the most likely results of an increase in market demand?

• A)Existing firms will produce less and some firms will exit the market so that the market supply curve will shift to the left.
• B)Some existing firms will produce more while some other firms will exit the market so that the market supply curve will remain the same.
• C)Existing firms will produce more and new firms will enter the market so that the market supply curve will shift to the right.
• D)Existing firms will produce less while new firms will enter the market so that the effect on the market supply curve is uncertain.
• E)Nothing will change in the market.

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Definitions:

Organizational Culture

The collection of values, expectations, and practices that guide and inform the actions of all team members in an organization.

Actual Behavior

Actual behavior represents the actions or conduct of individuals in real-world situations, as opposed to their intentions or beliefs.

Organizational Culture

The shared values, beliefs, and practices that shape the social and psychological environment of a business.

Kent Thiry

An American businessman known for his leadership roles in healthcare companies, particularly as the CEO of DaVita Inc.