If Price Is Below the Long-Run Competitive Equilibrium Level,there Will

question 125

Multiple Choice

If price is below the long-run competitive equilibrium level,there will be

• A)Greater demand.
• B)Positive economic profits.
• C)Greater output.
• D)Exit of firms from the market.

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Definitions:

Mark-Up

The markup on goods’ cost intended to defray overhead expenditures and yield profit.

Operating Expenses

The costs associated with the day-to-day operations of a business.

Operating Profit

Earnings derived from a corporation's principal operations, before subtracting interest and taxes.

Cash Discount Rate

A reduction on the invoice price offered by sellers to encourage prompt payment from the buyer.