When the Market Price in Long-Run Equilibrium Remains Unchanged After

question 10

Multiple Choice

When the market price in long-run equilibrium remains unchanged after an industry expands, then the long-run industry supply curve

• A)is vertical.
• B)is downward sloping.
• C)is upward sloping.
• D)is horizontal.
• E)does not exist.

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Definitions:

Hourly Rate

The amount of money paid for each hour of work.

Incentive Fee Contract

A contract type that provides additional compensation to the contractor for exceeding performance targets.

Cost Reimbursable Contract

A contract where the buyer reimburses the contractor for all legitimate costs incurred plus an additional fee for profit.

Fixed Fee

A fixed fee is a pricing structure where a single set price is agreed upon for a service or project, regardless of the time or resources used.