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:

Bowling Alone

A metaphor describing the decline in social engagement and community participation in American society, as examined in Robert Putnam's book detailing changes over the latter 20th century.

Social Networks

The structures made up of individuals or organizations that are connected by one or more specific types of interdependency, such as friendships, kinship, or common interests.

Quality Job Openings

Refers to employment opportunities that offer favorable conditions, good pay, benefits, and prospects for career advancement.

Women

Female human beings, often discussed in contexts emphasizing gender roles, rights, and social, cultural, and biological distinctions from men.