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

question 33

Multiple Choice

A market with constant costs is in long-run equilibrium when it experiences a permanent increase in demand.
Market supply ________ and the market price ________.
Market output ________ and in the long run each remaining firm makes ________ profit.

• A)increases;falls until it reaches each firms' minimum average total cost;increases;zero economic
• B)decreases;rises until it reaches each firms' minimum average variable cost;decreases;zero economic
• C)increases;falls;increases;an economic
• D)decreases;rises until it reaches each firms' minimum average total cost;decreases;an economic
• E)increases;does not change;increases;zero economic

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