Regardless of Quantity in Long-Run Equilibrium, the Industry Price Cannot

question 162

Multiple Choice

Regardless of quantity in long-run equilibrium, the industry price cannot exceed the

• A)long-run average cost of supplying that quantity.
• B)total variable cost of supplying that quantity.
• C)long-run total cost of supplying that quantity.
• D)minimum long-run marginal cost of supplying that quantity.

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Definitions:

Crowd Out

A phenomenon where increased public sector spending reduces or eliminates private sector spending in the same market, often through higher interest rates or available financial resources.

Taxes

are compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Domestic Output

The total value of all goods and services produced within a country's borders in a specific time period, often referred to as Gross Domestic Product (GDP).

Industrially Advanced Countries

Nations with highly developed economies characterized by significant industrial growth, technological advancement, and high standard of living.