A Perfectly Competitive Market Is Initially in Long-Run Competitive Equilibrium

question 107

Multiple Choice

A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand increases. As a result,

• A)the marginal revenue curve for each firm shifts upward.
• B)the demand curve for each firm shifts upward.
• C)marginal cost for each firm falls.
• D)average total cost for each firm rises.
• E)a and b

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Definitions:

Reciprocal Determinism

A concept in psychology that posits an individual's behavior is both influenced by and influences their personal factors and the environment.

Spotlight Effect

The belief that others pay more attention to our appearance and behavior than they actually do.

Self-efficacy

An individual’s belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Self-disclosure

The act of revealing personal information or feelings to others.