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

question 58

Multiple Choice

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

• A)incur an economic loss;exit;decreases;rises until it reaches the firms' minimum average total cost;decreases;zero economic
• B)make zero economic profit;enter;increases;falls;increases;an economic
• C)incur an economic loss;exit;decreases;rises until it reaches the firms' minimum average total cost;decreases;an economic
• D)make zero economic profit;exit;decreases;rises until it reaches the firms' minimum average variable cost;decreases;an economic
• E)make an economic profit;enter;increases;falls;increases;economic profit

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Definitions:

Renewable Solar Energy

Energy generated from the sun's rays, which is sustainable and inexhaustible, used to produce electricity or heating without emitting greenhouse gases.

High Heat Content

A characteristic of materials or substances with a significant ability to store thermal energy, often important in fuel and energy contexts.

Fuel

Substances used to generate energy through combustion or chemical reactions, such as gasoline, coal, or nuclear material.

Land Degradation

The decline in the quality of land due to human activities, environmental change, and other factors, leading to decreased agricultural productivity and the loss of land's ability to regenerate.