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

question 56

Multiple Choice

A perfectly competitive market is initially in long-run competitive equilibrium. Then, market demand increases. By the time all adjustments have been made, price will be __________ its original level if the industry is a(n) __________ cost industry.


Definitions:

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, often related to atherosclerosis, hypertension, and other heart issues.

Death Rates

Statistical measures representing the number of deaths within a specific population during a set period of time.

Decreased Dramatically

A significant reduction or drop in quantity or frequency.

Internal Failure Cost

Costs associated with defects found before the product is delivered to the customer, part of Quality Costs.

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