Suppose a Perfectly Competitive Industry Is in Long-Run Equilibrium

question 215

Multiple Choice

Suppose a perfectly competitive industry is in long-run equilibrium. If a decrease in demand leads to a higher long-run price, we know that

• A) this is a decreasing-cost industry.
• B) this is an increasing-cost industry.
• C) some firms will be losing money in the long run.
• D) after further adjustments, price will fall to its original level.

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Definitions:

Metered-Dose Inhaler

A device that delivers a specific amount of medication to the lungs, in the form of a short burst of aerosolized medicine that is inhaled by the patient.

Systemic Effects

Effects of a medication or disease that are not localized but impact the entire body.

Tachycardia

A condition where the heart rate exceeds the normal resting rate, typically defined as a heart rate over 100 beats per minute in adults.

Topical Medication

Medicines applied directly to the skin or mucous membranes to treat localized conditions.