In Long-Run Equilibrium, Purely Competitive Markets

question 66

Multiple Choice

In long-run equilibrium, purely competitive markets

• A)minimize total cost.
• B)maximize the sum of consumer surplus and producer surplus.
• C)yield economic profits to most sellers.
• D)inevitably degenerate into monopoly in increasing-cost industries.

Grasp the fundamentals and applications of discounted cash-flow analysis.

Comprehend the importance and focus areas of the income statement method in business valuation.

Acknowledge the significance of human resources in the acquisition or sale of a business.

Identify key physical assets for valuation in business transactions.

---

Definitions:

Market Demand Curve

A graphical representation showing the relationship between the quantity of a good consumers are willing and able to purchase and the price of the good.

Profit-maximizing Output

The level of production at which a business achieves the highest possible profit.

Cournot Model

An economic model used to describe an industry structure in which companies compete on the amount of output they will produce, which they decide upon independently of each other and at the same time.

Prevail

To be widespread or dominant, or to win against opposing forces.