A Perfectly Competitive Market Is Initially in Long-Run Competitive Equilibrium

question 159

Multiple Choice

A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand increases. This causes existing firms in the market to __________ and __________. As a result of the latter, the market supply curve shifts __________.

• A)produce more output; some existing firms to exit the market; leftward
• B)produce less output; new firms to enter the market; rightward
• C)produce more output; new firms to enter the market; rightward
• D)expand their plant size; some existing firms to exit the market; leftward
• E)none of the above

Define and apply the doctrine of res ipsa loquitur, including the requirements for a successful claim.

Analyze legal scenarios involving premises liability, specifically relating to safety regulations and negligence.

Understand and describe the concept of absolute privilege in defamation cases, including its scope and limitations.

Understand the different types of play and their characteristics.

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Definitions:

Autonomous Consumption

The portion of consumption spending that does not change with changes in income level, reflecting basic consumption needs.

Disposable Income

Disposable income is the amount of money that households or individuals have available for spending and saving after income taxes are accounted for.

Consumption

The use of goods and services by households or individuals, forming part of the aggregate demand in an economy.

Induced Consumption

The portion of consumer spending that varies with income. As income increases, consumers will spend more, and as income decreases, consumers will spend less.