Assume the Peanut Industry, a Perfectly Competitive Industry, Is in Long-Run

question 17

Multiple Choice

Assume the peanut industry, a perfectly competitive industry, is in long-run equilibrium with a market price of $5. If demand for peanuts increases and this industry is a decreasing-cost industry, long-run equilibrium will be reestablished at a price

• A) greater than $5.
• B) less than $5.
• C) equal to $5.
• D) either greater than or less than $5, depending on the number of firms that enter the industry.

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Definitions:

Tacit Consent

The silence or lack of objection that implies agreement or consent to a proposition without explicit verbal confirmation.

Bullying

A form of aggressive behavior where someone intentionally and repeatedly causes another person injury or discomfort.

Ordinary Aggression

Behavior aimed at causing harm or pain to others, seen in day-to-day situations among individuals.

Verbal

Pertaining to words and language, including spoken, written, or signed forms of communication.