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

question 49

Multiple Choice

A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand falls. This causes the marginal revenue curves for existing firms to shift __________ and for these firms to produce __________ output. Some of the existing firms will end up __________.

• A)upward, more, increasing their plant size
• B)downward, less, exiting the market
• C)downward, more, purchasing more capital equipment
• D)upward, less, cutting fixed costs
• E)none of the above

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Definitions:

Brain Capacity

Refers to the volume or size of the brain, often related to cognitive ability, processing power, and information storage capabilities.

Solitary Life

A lifestyle choice or condition where an individual prefers or happens to spend most of their time alone, away from social interactions.

Brain Sizes

The physical measurement of the brain’s volume or weight, which can vary among individuals and species, sometimes correlating with cognitive abilities.

Social Groups

Collections of individuals who interact with each other, share similar characteristics, and collectively have a sense of unity or identity.