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

question 183

Multiple Choice

A perfectly competitive market is initially in long-run competitive equilibrium.Then,market demand increases.By the time all adjustments have been made,price will be __________ its original level if the industry witnesses __________ costs.

• A) below; constant
• B) above; increasing
• C) at; decreasing
• D) at; increasing
• E) above; decreasing

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Definitions:

Planning Phase

The initial stage in a project or strategy where objectives are defined and approaches are determined.

Diversification Analysis

The process of identifying and implementing new business opportunities outside a company's current products, services, or markets to reduce risk.

Marketing Plan

A detailed strategy for identifying target markets and how to reach them, outlining marketing objectives, tactics, and measures of success.

Harley-Davidson

A motorcycle company in the United States famed for producing heavy bikes intended for long-distance riding on highways.