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

question 34

Multiple Choice

Assume a perfectly competitive industry is in long-run equilibrium at a price of $20. If this industry is a constant-cost industry and the demand for the product decreases, long-run equilibrium will be reestablished at a price

• A) greater than $20.
• B) less than $20.
• C) of $20.
• D) either greater than or less than $20 depending on the magnitude of the decrease in demand.

Recognize the major players in the international trade of goods and services.

Understand the balance of payments and its components.

Grasp the impact of tariffs, quotas, and other trade restrictions on international trade.

Recognize the importance of cultural and language differences in international business activities.

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Definitions:

Merchant

A person or company engaged in the selling of goods, services, or commodities for profit.

Movable Thing

An item of personal property that can be physically relocated from one place to another, as opposed to immovable or real property.

Firearm

A portable weapon that launches one or more projectiles driven by rapidly expanding high-pressure gas produced by combustion.

Restatement of Contracts

A comprehensive summary that clarifies, organizes, and illustrates the principles of contractual law.