A Market with Constant Costs Is in Long-Run Equilibrium When

question 17

Multiple Choice

A market with constant costs is in long-run equilibrium when it experiences a permanent increase in demand.
In the short run,firms in the market ________.In the long run,some firms ________ the market.

• A)make zero economic profit;exit
• B)make an economic profit;enter
• C)incur an economic loss;exit
• D)make zero economic profit;enter
• E)none of the above

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Definitions:

Indentures

Legal documents or contracts that bind one party to work for another for a specified period, often used historically for apprenticeships or servitude.

Surnames

The family or last names inherited from one’s parents or ancestors, typically used as a means of identification.

Servitude

The state of being under the obligation to serve another person or being subject to some form of forced labor.

New Sweden

New Sweden was a Swedish colony in North America, established during the 17th century, located in parts of present-day Delaware, New Jersey, and Pennsylvania.