If an Industry Is in Long-Run Competitive Equilibrium and Experiences

question 3

Multiple Choice

If an industry is in long-run competitive equilibrium and experiences a decrease in demand, then as a result the equilibrium price will __________, which will cause the representative firm's __________ curve to shift downward and some firms will __________ the industry.

• A)rise; marginal cost; enter
• B)fall; marginal cost; enter
• C)rise; marginal revenue; enter
• D)fall; demand; exit
• E)fall; marginal cost; exit

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Definitions:

Social Equity

The fair and just distribution of resources and opportunities among all members of a society, aiming to reduce disparities and promote equality.

Social Justice

Concept that challenges the social structures, processes, and practices associated with inequalities that lead to oppression.

Equity

Principle based on fairness, justice, access, opportunity, and advancement for everyone, while recognizing historically underserved and unrepresented populations, identifying conditions needed to provide effective opportunities for all groups, and eliminating barriers to their full participation.

Diversity Training

Educational programs aimed at increasing participants' cultural awareness, knowledge, and skills to foster an inclusive working environment.