A Market with Constant Costs Is in Long-Run Equilibrium When

question 17

Multiple Choice

A market with constant costs is in long-run equilibrium when it experiences a permanent increase in demand.
In the short run,firms in the market ________.In the long run,some firms ________ the market.

• A)make zero economic profit;exit
• B)make an economic profit;enter
• C)incur an economic loss;exit
• D)make zero economic profit;enter
• E)none of the above

---

Definitions:

Supply of X

The total amount of a product "X" that sellers are willing and able to sell at possible prices, within a given time period.

Government Tax

Mandatory financial charges or levies imposed by the government on individuals, businesses, and transactions to fund government spending.

Supply

Refers to the total amount of goods or services that are available for purchase at any given price level.

Government Subsidy

Financial assistance given by the government to individuals, businesses, or institutions to support or encourage certain economic activities.