Assume a Perfectly Competitive Industry Is in Long-Run Equilibrium at a Price

question 335

Multiple Choice

Assume a perfectly competitive industry is in long-run equilibrium at a price of $30. If this industry is an increasing-cost industry and the demand for the product increases, long-run equilibrium will be reestablished at a price

• A) greater than $30.
• B) of $30.
• C) less than $30.
• D) either greater than or less than $30 depending on the magnitude of the decrease in demand.

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Definitions:

Translocated

The process of moving or transferring something from one location to another, often referring to the movement of genetic material within or between organisms.

Xylem Sap

The water and dissolved nutrients conducted throughout a plant by the xylem tissue.

Cohesion

The force that holds molecules of the same substance together, playing a crucial role in water transport in plants.

Water Molecules

The smallest unit of water (H2O), consisting of two hydrogen atoms bonded to one oxygen atom, essential for life and a major component of cells and ecosystems.