The Process of Adjustment to a New Long-Run Equilibrium in a Perfectly

question 32

Multiple Choice

The process of adjustment to a new long-run equilibrium in a perfectly competitive industry is complete when

• A)no firms want to enter or exit the industry.
• B)every firm has adjusted its production process to make the most efficient use of its resources.
• C)investors in the industry receive the standard economy-wide rate of return on their investments.
• D)All of the above are correct.

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Definitions:

Organ of Corti

A structure located in the cochlea of the inner ear containing hair cells that transduce sound vibrations into electrical signals for hearing.

Vestibular Nerve

Part of the inner ear that sends signals to the brain regarding balance and head position.

Endolymph

A fluid within the inner ear that fills the cochlear duct and vestibular system, important for transmitting sound and maintaining balance.

Oval Window

The membrane-covered opening that leads from the middle ear to the vestibule of the inner ear.