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

question 87

Multiple Choice

A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand increases. As a result, existing firms in the market begin to __________. By the time all adjustments have been made, profits will __________.

• A)earn positive economic profit, rise even higher
• B)earn positive economic profit; be back at zero
• C)produce more output; be less than zero
• D)produce less output; rise
• E)earn positive economic profit; turn into losses

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Definitions:

Demand For Jury Trial

A litigation process in which the defendant or plaintiff requests that a jury, rather than a judge, determine the outcome of a case.

Jurisdictional Allegations

Claims made in a legal complaint specifying why the court has the authority to hear the case based on the geographical location and the subject matter.

Document Caption

The heading or title at the beginning of a legal document that identifies the parties, the court, and the case number.

Name Of The Court

The official title or designation of a judiciary body, reflecting its jurisdiction and level within the legal system.