The Long-Run Competitive Equilibrium Model Describes What Happens to an Industry

question 128

Multiple Choice

The long-run competitive equilibrium model describes what happens to an industry after

• A)all existing firms disappear.
• B)only one firm survives.
• C)the government intervenes.
• D)the entry and exit of firms over time.
• E)the market no longer exists.

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Definitions:

Maximum Price

The highest price that can be legally charged for a good or service.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Hundredth Unit

The hundredth unit refers to the specific position or measure of something that is one hundred in a sequence or collection.

Future Price

The predicted price of a commodity, security, or currency in the future, often determined by future contracts in the marketplace.